It will be ‘business unusual’ for agents in the recovering market

The shake out of the property market is nearly over but the industry decks have been cleared, leaving only the hard core of estate agent ‘survivors’ and opportunities for a rebirth.
However, says Gerhard Kotzé, CEO of the ERA South Africa property group, it will definitely not be business as usual going forward, and the market will see more creative and innovative ways of delivering service and professionalism, which is good news for home buyers and sellers alike.
“I expect to see lots of new business models, new products and healthy competition for business between the top players that are left. Also, because there’s little flexibility on the financing side, we will be back to the intrinsic value of a given deal – that is, value for money in both the property itself and the service.
“Levels of professionalism overall will improve while changed market fundamentals will ensure there is no runaway price inflation in a very different environment to that which existed up until mid-2007.”
Meanwhile, he says, the market situation has already been relieved to some extent by lower interest rates that have reduced the cost of debt servicing although there is only a minor chance of further rate cuts soon.
“And while new mortgage advances remain low, this will change as the economy picks up a modicum of momentum. The latest Absa figures further substantiate this picture of modest recovery, with the prediction that there will be a 3% drop in house prices for 2009 as a whole.”
As it is, he says, the onset of summer has brought with it a more upbeat mood in the property market and agents are reporting a definite increase in sales day turnouts and completed deals, with security villages still being in the greatest demand.
“The bottom line is that we’re entering a new cycle of the market with less speculative activity and more solid growth, serviced by fewer agents whose professionalism will be in demand.”
Issued by ERA South Africa

  Comment on this Article

  Please login to post comments

Post to my facebook wall
Characters remaining

    Latest Property News
    • 20 Mar 2018
      Located close to the fast growing Fourways precinct, Dainfern continues to attract local and international interest from buyers seeking a secure lifestyle with affordable entry price of approximately R3 million.
    • 20 Mar 2018
      Property owners in the Durban CBD are addressing the affordability challenge that faces many prospective tenants in their area – and reconfiguring the inner city rental market in the process.
    • 20 Mar 2018
      One of the most misunderstood concepts in the process of selling a property is an exclusive or sole mandate.
    • 19 Mar 2018
      If a landlord opts to use a managing agent for the rental of his or her property, the inspection process can be easier as the agent is not emotionally involved and will certainly have concluded an in-depth inspection report in the interests of all parties.
    • 19 Mar 2018
      We all wish we could have the cheat sheet for selling a property – a simple Ctrl+Shift+C code that will magically secure an offer on your home in an instant. Though it is not possible to provide you with this cheat code (sadly, reality does not come with such perks), it is possible to provide you with a list of the most common blunders some of your neighbours have committed in their efforts to sell their homes
    • 19 Mar 2018
      Although property technology is now widely accepted as an established trend, especially in the international real estate arena, the industry has been cautious to advance and smaller markets like South Africa are still hesitantly dipping their toes in the water.
    • 16 Mar 2018
      Strange as it may seem, there is a stock shortage looming now in the luxury sector of the Johannesburg property market, because astute buyers have for the past few months been hurrying to snap up high-end homes being offered at excellent prices.
    • 16 Mar 2018
      No one likes having to claim but having insurance for your household contents is vital, and at the start of a new financial year, homeowners either applying for new household insurance or revising their existing insurance should take a comprehensive inventory of their possessions and keep track of the total value.
    Subscribe to the MyProperty Newsletter

    Last Name  
    Email Address  
    Email Frequency
    Share this Page

    For Sale Property
    Rental Property
    More Options
    Connect with us