Property still accumulates in value and is a good investment, and prices are relatively low and there are bargains in the market.
These are the main reasons for buying property according to today’s release of Absa’s Homeowners Sentiment Index, a representative sample of approximately 1,000 existing and prospective homeowners in major urban areas in the country – both Absa and non-Absa customers.
The survey determines the level of positive sentiment regarding buying, selling, investing, renting and the renovating of property, as well as property market conditions in general.
Some 66% of respondents surveyed in Q2 2017 were negative regarding the timing of selling their property.
“The sentiment around selling property declined noticeably in the first two quarters of the year from the second half of last year,” according to the report, noting that the top three reasons were that property prices were low and that “you won’t get the price you want for your property” (41%); the economy is not doing well and is in recession (13%) as well as only 11% believing property still accumulates in value and is a good investment.
While in Q2 2017, 78% of respondents were positive about property as an investment (down from 80% in Q3 and Q4 2016), 43% said it was still a good time for investment, and 18% said prices were relatively low and there were bargains in the market.
Interestingly, while 13% of respondents said there was demand for rental properties, 68% still believed it was better to buy than to rent. Almost half (32%) of respondents who were asked whether it is better to buy or rent property, indicated that renting was a better option, citing that renting is cheaper (19%), property prices are relatively high (11%), the economy is not doing well and is in recession (8%), and renting is more flexible, with no long-term commitment (8%).