Dear Business Partner
Absa Homeowner Sentiment Index Q1-2020: 3% decline in sentiment The Absa Homeowner Sentiment Index (HSI) shows that conﬁdence in the SA property market fell by 3% in Q1 2020 from Q4 2019. Respondents showed concern about the economic outlook, despite the interest rate cut of 0.25% in January 2020 and another 1.00% in March 2020.
Declining to 73% confidence in Q1 2020, the overall result indicates that sentiment in the market tends towards reduced activity – with fewer respondents considering it an appropriate time to buy, invest or sell property. While Q4 2019 had shown that concerns around political instability were subsiding and property’s appeal as a secure asset increasing, the picture changed in Q1 2020 due to the current economic uncertainty – many respondents citing COVID-19 specifically.
The Absa Homeowner Sentiment Index (HSI) determines consumer sentiment regarding the property market conditions in general in South Africa.
Please find attached report for your perusal, Quarter 1 index.
The BondExcel team