FHA Q&A – Real Estate and Covid-19 – Cape Town Property Players’ insights on the industry under lockdown
FHA asked 4 key players in the property industry to reveal their insights and opinions on the real estate market during and beyond COVID-19.
See what they had to say in this special feature:
Romy Tarboton – Signature Real Estate
1) How have you experienced the Nationwide Lockdown to have impacted the property market?
Whilst our online traffic remains relatively unscathed the amounts of actual bona fide enquiries have come to a grinding halt. As people adjust to a ‘new normal’ which often includes having to deal with working from home whilst caring for children et al, it is our view that ‘moving homes’ is simply not an immediate concern.
2) How have you adapted/innovated to continue to work during the Lockdown?
It’s afforded us with a ‘great pause’ resulting in more time to fine tune business processes and procedures. We’ve been reaching out to clients telephonically and using video chat. We’ve met as a team on Zoom. Some of our Agents are upskilling themselves via online training academies and we’ve encouraged one another to take this time to immerse ourselves in digital content that supports our mental health and keeps us motivated.
3) Do you foresee any long-term/lasting consequences of the Lockdown on the way the property industry functions?
We anticipate an increased emphasis on high quality video walkthroughs, virtual tours and general digital showcasing. We suspect that brands who put people first will succeed. Real Estate business owners will no doubt be trading as leanly as possible going forward.
4) Give us one positive takeaway that the Lockdown has brought you to realise
The conundrum of Industry versus Humanity. At the core of our profession lies people, who are struggling – Agents and clients alike. For someone like me with a background in Psychology this time has been a welcome reminder that a home is part of our self-definition and deeply tied to our sense of stability. I am grateful to have been reminded about what drew me into real estate in the first place: that our sense of the place we live is closely tied to our sense of who we are.
Philip Gullan – Dogon Group
1) How have you experienced the Nationwide Lockdown to have impacted the property market?
The Nationwide Lockdown, and indeed the global response to the Covid-19 pandemic has had a dramatic impact on our property market. From a functional perspective, the standard process of taking a prospective buyer to view an apartment has no longer been possible. Beyond that, the uncertainty that has been brought about as a result of this, has understandably resulted in potential buyers putting the brakes on a would be purchase. Buying a property can be a once or twice in a lifetime decision for some. With that in mind the economic consequences of this lockdown and the perceived fear of what may be ahead have resulted in less offers.
While there have been challenges, there have also been positive developments. The South African reserve bank has now cut the repo rate by 100 basis points, to its lowest-ever point.
This will make borrowing money cheaper. It may also have a positive impact on the price of property, with greater benefits to cash buyers. Also, those with prime-linked loans will get a reduction in interest rates.
Lastly, South Africa is an emerging market – as such, our currency has depreciated in recent weeks. With regards to our property market, this is not an entirely bad thing. We live in an exceptionally beautiful place, and in terms of value for money, foreign buyers will be hard-pressed to find anywhere better.
2) How have you adapted/innovated to continue to work during the lockdown?
In my experience, this has been a great time to connect with my buyers, and sellers. We are fortunate to live in a time where we can continue meet our clients needs. The online property portals allow us to reach buyers in the comfort of their homes. Video walk-throughs have been an effective tool to substitute a viewing, and meetings via Zoom can be quite effective. In adapting to the lockdown, I have tried to remember that fundamentally our purpose is to be of service to our clients. While the pace of everything has changed; this pause will allow us to lay the groundwork for what’s to come.
3) Do you foresee any long-term/lasting consequences of the lockdown on the way the property industry functions?
This is a difficult question to answer. The property market is in constant change, and as a result, we as property practitioners are ever adapting. This lockdown will most certainly have lasting consequences the world over. While I always try to remain optimistic, the reality is, most industries will have difficult times ahead. The economic impact of this will be far reaching, and I do believe it will be quite some time before its “business as usual”. However, as a result of this lockdown I’m sure we can all appreciate the importance and value of a home.
4) Give us one positive takeaway that the lockdown has brought you to realise?
Gratitude. This lockdown has reminded me of just how much I have to be grateful for. I’ve enjoyed spending this time with my family, and staying connected with friends over Zoom. I have enjoyed the challenges of adapting to this environment, and the way it has connected us all. I’ve been reminded of how grateful I am for what I have, and will never take a round of golf for granted again.
Ingred Blicher Hansen – Seeff
1) How have you experienced the Nationwide Lockdown to have impacted the property market?
The lockdown’s immediate impact to me, was that foreigners that were keen to engage in a property purchase were now focused on how they could get back to their home country and would look to refocus on property once they were able to do so. Local purchasers, are as many of us, concerned about the financial implications in our immediate future and albeit that the prime lending rate has been reduced, which in all likelihood will impact positively on the affordability of loans, there may still be concern around meeting those commitments for some.
2) How have you adapted/innovated to continue to work during the Lockdown?
I have kept up communication with both my sellers and potential purchasers and created videos of properties including drone footage where possible, as I also have the attention of my purchasers I am using the time to better define their requirements so that we can expedite a purchase once we have the freedom to safely move around. I am also using the time to train daily via our company webinar sessions and keeping mentally fit.
3) Do you foresee any long-term/lasting consequences of the Lockdown on the way the property industry functions?
I think that it has become quite evident that many functions barring the showing of a property can be done remotely and perhaps we will think thrice before printing documents unnecessarily. As I am unsure of lockdown and travel globally it may have an effect on when foreigners will be back on our shores so hopefully getting creative with virtual viewings may be the way to go for those that are keen to purchase and take advantage of the exchange rate and competitive pricing.
4) Give us one positive takeaway that the Lockdown has brought you to realise
That there is nothing more important than yourself and your loved ones, their happiness, health and safety.
Jan Van Eck – Chas Everitt
1) How have you experienced the Nationwide Lockdown to have impacted the property market?
It has certainly brought things to a grinding halt. Whilst there is a lot you can do online, before making what for many people is their biggest investment, they really would want to personally view the property thoroughly though. The admin can still be done, but then the deeds office being closed stops the process once again.
2) How have you adapted/innovated to continue to work during the Lockdown?
Our agents have all set up home offices and are still working, albeit from home. They are doing online courses to upskill themselves during this time. We are also in contact with our clients, offering advice and are still able to do valuations and listings due to our comprehensive in-house database, and software packages we subscribe to. Various video communication tools have also been invaluable in keeping in touch with our team and clients. Having the support of a strong team nationally in Chas Everitt has been a blessing. We have managed to conclude sales and secure bonds for our clients during lockdown, and start the transfer process via our attorneys.
3) Do you foresee any long-term/lasting consequences of the Lockdown on the way the property industry functions?
A lot of people have had to overcome obstacles in working remotely, which has opened their eyes to change. We have all had to upskill ourselves in order to survive. The importance of being part of a large organisation can’t be overstated enough, via online training academies, support, marketing teams etc.
There will be lasting effects of the lockdown due to limiting prospective buyer’s affordability and prices will be under pressure, at least for the remainder of this year. Long term things will return to normal. We will rely more on a higher level of IT than before, but property is a relationship business. Buyer’s want to physically see what they are buying and will still need a good agent to assist them navigate the process. Doing area specific, accurate valuations for sellers will always be crucial.
4) Give us one positive takeaway that the Lockdown has brought you to realise.
I think it has given us a forced opportunity to slow down and take stock of our lives and assess what is important to us all.
Hopefully we all come out of this with a better sense of what is important and a lot more focused.
- On April 23, 2020