Absa’s Homeowners Sentiment Index (HSI) for the second quarter of 2024 shows a decrease in South African homeowners’ interest in alternative power solutions (APS), correlating with a stable electricity supply since March. Despite this, reducing electricity costs remains a significant factor, with 69% of homeowners prioritising it. The majority fund APS through personal savings (83%) or personal loans (75%), preferring hybrid systems (47%), off-grid solutions (37%), and generators (30%).

Nondumiso Ncapai, Absa Home Loans Managing Executive, noted that the changing appetite for APS aligns with broader renovation trends aimed at adding property value and enhancing living spaces, with affordability being a key consideration amid economic instability. Celebrating its tenth year, the Absa HSI now offers more detailed provincial insights and emerging trends such as APS investment factors and financing preferences.

Consumer confidence in the property market increased by two percentage points to 84%, the highest since the survey began in 2015, driven by the perception of property as a secure, wealth-creating asset. The top property trends in 2024 include a high percentage of first-time home loan applicants (over 60%), a rise in eco-conscious homeowners, increasing applications from single women, particularly young black females, and a growing trend of renting properties for secondary income.

Buyer sentiment has improved significantly in 2024, reaching 70% in Q2, reflecting property as a sound investment despite concerns over interest rates, economic instability, and rising living costs. Investor confidence also improved, with 80% positive sentiment due to anticipated future value and rental demand. However, sellers remain cautious, often waiting to sell unless under pressure. Inland regions saw a 3% confidence increase to 87%, while coastal areas experienced a slight decline to 80%.

Ncapai highlighted the current negative real property price growth, indicating a mismatch between sellers and buyers, but anticipated lower inflation and interest rates by late 2024, potentially easing conditions.