Property market sentiment somewhat down in Q3 2019 from Q2

Positive sentiment regarding conditions in the South African residential property market was somewhat lower in the third quarter of 2019 compared with the second quarter, despite a cut in lending rates in late July and a rebound in economic growth in the second quarter after a contraction in the first quarter.

The overall national Homeowner Sentiment Index (HSI) score, which reflects the percentage of survey respondents with positive sentiment regarding residential property market conditions in the country, tapered off to 75% in the third quarter of 2019 from 77% in the second quarter. Levels of sentiment in respect of the HSI sub-indices were somewhat mixed in the third quarter of the year compared with the second quarter, which serve as an indication that consumers were in general not overly positive nor overly negative about property market conditions and influencing factors in the third quarter.

Various economic and consumer-related factors will drive property market sentiment in the rest of the year and in 2020, which will be reflected in levels of market activity, buying patterns, transaction volumes, property price growth and the demand for and growth in mortgage finance.