JOHANNESBURG - South Africa’s property market is buzzing, and it’s the younger buyers who are leading the charge.
Absa’s latest homeowner sentiment index shows that South Africans under the age of 44 are the most confident in property’s long-term value.
Inland homeowners are showing stronger optimism than their coastal peers, signalling growing belief in buying, investing and renovating.
Nondumiso Ncapai from Absa said it was exciting to see more young buyers enter the market.
“I think it’s aspirational. Owning property is a dream that many would love to achieve in their lifetime and we’re seeing it in the younger customers," Ncapai said.
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According to the report, the Homeowner Sentiment Index for respondents younger than 44 years was 89 percent, whereas the index dropped to 81 percent for respondents over 55 years of age.
During the last quarter, customers under the age of 44 years contributed 50 percent of property purchases.
“As the confidence improves in the market, we’re seeing a demand increase overtime. First time buyers are largely the segment where we see the most prevalent home loan applications."
The Index shows that Inland respondents recorded more confident scores in the different subindices than their coastal counterparts.
“It’s quite interesting that within one country there are different markets. The pricing for the inland market makes it very attractive to new aspirational buyers. The coastal markets, more predominantly in the Western Cape, we’ve seen a different dynamic.”
Ncapai said when interest rates come down, affordability improves in certain segments of the market.
“I think it’s a positive sign for the industry and those who believe property is the right long-term investment,” she said.