Homeownership remains an aspirational milestone for many South Africans entering the property market for the first time.
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Consumer confidence in South Africa’s property market increased by one percentage point to 88%, reaching its highest level since the index was launched in 2015.
Absa’s latest Homeowners Sentiment Index (HSI) for the first quarter of 2026 shows that the increase continues the upward trend seen since 2024, pointing to sustained optimism in South Africa’s residential property market.
All sub-indices reached their highest levels to date.
“The main driver of positive sentiment is that many South Africans view property as a secure investment asset,” said Tshepo Mashashane.
“Homeownership also remains an aspirational milestone for many first-time buyers entering the market, which is reflected in the high number of home loan applications from this segment.
Investors are also expected to continue playing a key role in the market, driven by ongoing demand for rental properties.”
The overall score was supported by stronger sentiment across all categories within the HSI, with buying, selling, investing and renovating all recording gains from the final quarter of 2025.
Selling sentiment recorded the largest increase at four percentage points, followed by buying and renovating sentiment at three percentage points each, while investment sentiment rose by two percentage points.
The Index also revealed stronger confidence among younger South Africans participating in the property market.
Respondents aged between 25 and 34 recorded the highest confidence levels at 90%, with this group accounting for 27% of buyers over the past 12 months.
Those aged between 35 and 44, as well as 45 and 54, both recorded confidence levels of 88%, while respondents over the age of 55 were the least confident at 84%.
Confidence around renovations has also reached a record high of 82%, driven by the belief that home improvements increase property value and can deliver stronger returns when selling.
High levels of investment confidence were also recorded among both existing and aspiring investors, supported by a strong belief in property as a long-term investment choice.
“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 will be a delayed impact as the macroeconomic environment changes,” said Mashashane.
“Higher fuel prices and the impact this could have on inflation and the interest rate outlook may still influence sentiment in the months ahead.”
“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.”
According to the Consumer Price Index (CPI) for April 2026 released by Statistics South Africa, annual consumer price inflation was 4.0% in April 2026, up from 3.1% in March 2026. The CPI increased by 1.1% month on month in April 2026.
The statistical agency said that the main contributors to the 4.0% annual inflation rate were housing and utilities (5.2%, contributing 1.2 percentage points), transport (4.9%, contributing 0.7 of a percentage point) and insurance and financial services (5.7%, contributing 0.6 of a percentage point).
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