Sentiment in the property market still dropping
Whether you are looking at property for sale in Port Shepstone, or selling a property elsewhere, there was not very positive news regarding sentiment in the market in the second quarter of 2018. Positive sentiment continued to drop, and we look at some of the reasons why.
When it comes to selling or buying property for sale in Port Shepstone, there is some negative news in the property market at present, with sentiment being down almost across the board.
This is according to ABSA’s Homeowner Sentiment Index (HSI), which takes a sample of consumers across the spectrum of the residential property market.
Overall, the positive sentiment across South Africa dropped by 2% to 73% in the second quarter, while it is 12% off from the last quarter of 2017.
One of the major positive factors that came from the report was property as a secure asset, and that it still increases in value. On the negative end of the survey was the land reform issue which caused uncertainty as well as some political concern still affecting things.
Buying property took quite a big knock as it dropped by 9% to 61%. Despite this, many of the respondents were still keen to buy property, with the above mentioned positive factor being one of the main reasons. They also felt that the relatively low prices allows for bargains to be found in the market.
Sellers’ sentiment also dropped to 43%, 3% lower than last quarter, with the main positive being the fact that prices remained fairly high, allowing for a good price if you land a sale.
Investing in property as well as renovating of a property also dipped, while other sentiments saw consumers say that they would still rather buy than rent, but there was also a 5% drop in that regard.
This all showcases the impact of higher taxes and increasing petrol prices, while the land reform issue continues to cause uncertainty for many.
Right now, the expectation is that this sentiment will continue for the rest of the year.
