The Covid-19 Realty Reality

Like most things, the property market has been affected by the COVID-19 pandemic. Hasmita Amtha looks at what the future holds for potential buyers

- Hasmita Amtha

The impact of COVID-19 on the property industry has been an undeniable challenge, and felt across the globe.

Putting this into perspective, Firzt Realty’s CEO Denese Zaslansky points out: “Locally, in terms of house and sectional title sales, our company experienced an 80% drop in sales for April, a 70% drop in May and in June our sales showed a 10% drop year on year.

“The impact of COVID-19 in April and May certainly had a negative effect on buyers’ appetite partly due to not viewing the properties personally. Buyers’ sentiment changed due to the reduced interest rates where a buyer purchasing for R1-million found that, taking the saving into account, their monthly repayments would be around R1 800 less and that they would qualify for a mortgage bond easier given that they would score on affordability for the banks’ criteria.”

Craig Hutchison, CEO of Engel & Völkers Southern Africa, says: “The deeds office being closed during lockdown and the subsequent municipalities’ inability to issue rates clearance certificates timeously has put tremendous financial strain on real estate companies and commission earners. What this period has exposed is the online offerings that do not have that human contact to navigate the public through the transactions in these uncertain times.”

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