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29 May 2025
- Average age of homebuyers continues to decline, with first-time buyers now entering the market at 38 and property investors at 43.
- First-time buyers remain the most active segment, with improving affordability likely to sustain this momentum.
- Western Cape net migration remains positive but is slowing; Eastern Cape sees gains while KwaZulu-Natal experiences increased outward migration.
Absa’s Homeowners Sentiment Index (HSI) for the first quarter of 2025 reveals a growing aspiration among South African homeowners to live off-grid, with many seeking to replace municipal and state-provided services – particularly electricity and water – in pursuit of greater sustainability and self-sufficiency. More than three-quarters (76%) of respondents indicated a desire to move away from state-supplied electricity, while nearly half (49%) expressed interest in replacing municipal water sources.
In parallel, households are actively adopting more sustainable practices in their daily lives, with 57% cultivating fruit and vegetable gardens and 42% using solar power for electricity. A majority of homeowners (64%) are exploring borehole and filtration systems, while 53% are considering rainwater harvesting to improve water security.
“We’re seeing households take a more proactive stance on sustainability, not just through energy and water alternatives, but also through lifestyle changes that signal a broader recalibration of what homeownership means in today’s environment,” said Nondumiso Ncapai, Managing Executive: Absa Home Loans.
First developed in 2015, the Absa HSI is an indicator of the overall state of consumer confidence in South Africa’s property market. In Q1 2025, the Index was expanded to include new questions exploring consumer perspectives on sustainable living and emerging trends likely to influence this in the future.
Sentiment Across the Property Market
Overall homeowner sentiment declined slightly by 2 percentage points to 85% in Q1 2025, down from 87% in Q4 2024. The dip reflects growing uncertainty around U.S. policy direction and the South African Reserve Bank’s decision not to implement a widely anticipated rate cut in March. Despite this, the current reading remains the second-highest since the Index’s inception a decade ago.
- Buying sentiment held steady at 77% in Q1 2025, maintaining the gains recorded in the previous quarter. The average age of homebuyers continued to decline, with first-time buyers now entering the market at 38.
- Selling sentiment declined marginally to 49%, down from 51% in Q4 2024. Many sellers are still adopting a wait-and-see approach, anticipating that they will get better prices in the future.
- Buy-versus-rent sentiment dropped by 4 percentage points in Q1 2025. While many renters noted they had now saved enough for a deposit or sought more space, others continued to favour renting for its flexibility and perceived affordability.
- Renovation sentiment fell by 3 percentage points to 79%, with most homeowners citing value-adding improvements and quality-of-life enhancements as primary motivators. Rising input costs remain a barrier for many.
- Investment sentiment held firm at 85%, sustaining its highest level on record since the Index began. While concerns around economic conditions and the country’s long-term trajectory remain, property continues to be viewed as a resilient investment vehicle.
At a provincial level, the highest overall homeowner sentiment was recorded in Limpopo (93%), the Free State (92%) – marking its highest score on record – and the Northern Cape (92%). Migration trends continue to shape local dynamics: the Western Cape remains a net beneficiary of inward migration, although the pace has slowed over the past three quarters. The Eastern Cape continues to record positive net migration, while KwaZulu-Natal has seen an uptick in outward migration.
“The sustained strength in overall sentiment, particularly in buying and investment confidence, signals not only the resilience of South African consumers, but also a growing optimism around a medium- to long-term recovery in property market activity,” said Ncapai. “Despite near-term pressures, there is a clear belief that property remains a reliable store of value and a pathway to financial security. The momentum in positive sentiment over the last three quarters is expected to continue into the rest of 2025.”
