Where is the Real Estate industry heading post COVID-19?

After any crisis there is a rebound. In all recorded cases to date, once the epidemic - or pandemic in this case - was over, real estate quickly returned to normal.

Having three successive drops in interest rates, making them the lowest on record for over 50 years, the cost of owning property has never been as attractive as what it is now. In times of stock market crashes, as we have witnessed, investors often favour "safer" investments in the form of brick and mortar.

Low interest rates naturally increase net yields, making property a viable investment prospect. The weakening of the Rand has also made SA an attractive destination for foreign buyers, where the depreciated Rand now affords almost 30% more value that it previously had.

There will be more pressured sales and the market will see a higher supply rate compared to demand. Prices will, and can already, be seen to be adjusting and a "Buyer's market" will continue to prevail. It is critical that property values are regularly updated and that clients' elected brokers guide and serve them with realistic and impartial information in arriving at a market value.

We pride ourselves on this, and have walked away from mandates due to unrealistic or bloated selling expectations. Our buyers likewise look to us to market appropriately priced properties, and typically take our guidance when it comes to making an offer.

As with most industries, many real estate brokers may choose to leave the sector, creating a gap for those resilient and dedicated professionals who are devoted to their vocation. We count ourselves among them.

What's important here is not the drop; it's the fact that there is always a rebound once a crisis is over.

Kind regards,

Regan Harris | C.E.O.

Tel: +2711 463-0155 | Fax: 086 615 3598 | Cell: +27 82 320 6464