The increase extends the upward trend that began in 2024 and signals continued resilience in the country’s residential property sector.
Image: Independent Newspapers
Consumer confidence in South Africa’s residential property market has climbed to its highest level since 2015, with growing optimism among homebuyers, sellers and investors despite concerns about inflationary pressures and rising fuel costs.
According to the latest Homeowners Sentiment Index (HSI) released by Absa on Wednesday, overall confidence in the property market rose by one percentage point to 88% in the first quarter of 2026, marking the highest reading since the survey was launched more than a decade ago.
The increase extends the upward trend that began in 2024 and signals continued resilience in the country’s residential property sector.
The HSI showed improved sentiment across all major categories measured in the survey, including buying, selling, investing and renovating property.
Selling sentiment recorded the strongest gain, rising by four percentage points compared with the final quarter of 2025. Buying and renovating sentiment both increased by three percentage points, while investment sentiment climbed by two percentage points.
All of the subindices reached record highs during the quarter.
Tshepo Mashashane said South Africans increasingly viewed property as a secure long-term investment.
“The main driver of positive sentiment is that many South Africans believe property is a secure asset for investment,” Mashashane said.
“Homeownership is also an aspirational purchase for many South Africans entering the market for the first time, reflected in the high number of home loan applications from the first-time homebuyer segment. Investors are also expected to play a key role in the market, driven by ongoing demand for rental properties.”
Mashashane said investors were also expected to remain active in the market due to ongoing demand for rental accommodation.
The survey found that younger South Africans were the most optimistic about the property market.
Consumers aged between 25 and 34 recorded the highest confidence levels at 90%, while this age group accounted for 27% of all buyers during the past year.
Respondents between 35 and 44 years old, as well as those aged 45 to 54, both recorded confidence levels of 88%.
South Africans older than 55 were the least optimistic segment, although confidence among that group still remained relatively strong at 84%.
Confidence in home renovations also surged to a record high of 82%, supported by the perception that upgrading properties could increase their market value and improve future returns when selling.
The survey further pointed to sustained investment appetite among both existing and aspiring property investors, underpinned by confidence in real estate as a reliable long-term asset class.
The upbeat sentiment comes despite uncertainty in the broader economic environment, including concerns about global geopolitical tensions and the impact of higher fuel prices on inflation and interest rates.
Mashashane said developments in the Middle East had not yet materially affected homeowner sentiment when the survey was conducted, although risks remained.
“The developments in the Middle East had not affected homeowner sentiment at the time the survey was conducted, but only time will tell whether there is a delayed impact as the macroeconomic environment changes,” he said.
“Higher fuel prices and the effect this could have on inflation and the interest rate outlook may still influence sentiment in the months ahead.”
The strong HSI reading suggests South Africa’s residential property market continues to benefit from improving consumer confidence, particularly among younger buyers and investors seeking long-term asset growth.
Launched in 2015, the Absa Homeowners Sentiment Index is regarded as a key indicator of consumer confidence in the country’s property market and tracks attitudes toward buying, selling and investing in residential property.
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