Sentiment continues to dwindle in property market
Consumers across the property market continue to be less positive about things in the second quarter of 2018. So whether you are selling, or on the hunt for property for sale in the South Coast of KwaZulu-Natal, there are some issues that you may have to deal with.
Negative sentiment continues to dominate the property market, whether you are looking to sell or buy property for sale in the South Coast of KwaZulu-Natal.
This was determined by ABSA’s Homeowner Sentiment Index (HSI), a survey that is done with a sample of consumers within the residential property market.
Looking at the positive sentiment around property, there was an overall drop from 75% to 73% in the second quarter of 2018. This marked a sharp drop of over 10% when looking at the numbers from the end of 2017.
The main positive factor that remained from the survey was the fact that many still saw property as a secure asset, and were confident that it would still increase in value. However, the negative factors that were making a major impact on the market included the land reform issue, as well as remaining political uncertainty.
Breaking things down further, the sentiment around buying property continued to fall, with positive sentiment dropping to 61%. Despite this, the majority of those who participated were still optimistic about buying, as there was belief that some bargains were still available in the market.
Looking at those selling, there was a smaller drop to 43%, but it showed that the majority were still not positive that it is a market to sell in.
Securing property as an investment as well as the notion of buying instead of renting completed the list, and both also suffered a decline in sentiment.
The decrease is largely put down to tough financial conditions, including higher petrol prices and taxes, while the political issues continue to impact the market.
Unfortunately, this is not expected to change for the remainder of the year.
