Despite reduced confidence in SA property it is still a buyers' market

Confidence in the South African property market fell by 3% in the first quarter of 2020 compared to the fourth quarter of 2019, according to the latest Absa Homeowner Sentiment Index (HSI) released on Monday.

The HSI determines consumer sentiment regarding the property market conditions in general in South Africa.

Respondents showed concern about the economic outlook, despite the interest rate cut of 0.25% in January 2020 and another 1.00% in March 2020. The repo rate is currently at 4.25%.

The index also reflects investors being the most positive about the property market at the moment, followed by people currently renting and then first-time homeowners. Those who had already owned a home before had the least confidence in the market.

Sale prices at the higher end of the market could drop by between 20% and 30%,

We can expect property prices in the mid-range - R1.5 million to R3 million - to decrease by 15% - 20% in some areas, with prices in the affordable range experiencing a 5% - 10% decline.