Property Perspectives: Prevailing sentiment of positivity in property market during Covid-19 pandemic

The Covid-19 pandemic has swept through South Africa and the world, changing everything about life and work as we know it.

In order to curb the spread of the virus, the South African government implemented a national lockdown that imposed restrictions on most sectors of the economy. This created significant challenges for businesses and the property industry at large. With evictions halted indefinitely, rental incomes at risk, remote working a widespread reality and property agents unable to operate with ease, the need to understand the impact of Covid-19 on people’s lives and livelihoods is obvious.

In order to gain a deeper understanding of the impact of the national lockdown on property market participants, Private Property recently conducted a property sentiment survey – the findings of which will form the basis of their first Property Perspectives Report. This survey represents the perspectives of almost 6 000 buyers, sellers, landlords and tenants, and seeks to uncover the collective views of consumers so that the prevailing sentiment in the property market can be made clear.

For all participants of this survey, a common theme throughout Covid-19 has been uncertainty.

Sellers are concerned about whether their sales will be realised; landlords and tenants face the immediate challenges associated with cash flow, and buyers remain unsure about timing and affordability.

Despite this, there appears to be a prevailing sentiment of positivity in the market. Whether it be from sellers who continue to market and plan for the future, or young first-time buyers excited at the prospects of entering the property market in earnest, what Private Property has found most encouraging, is the enduring optimism in the face of uncertainty.

Limitations in people’s movements and pressure on finances are impacting landlords and sellers most acutely. However, landlords appear to have taken advantage of debt relief packages afforded to them by their home loan providers, and sellers show no heightened sense of urgency to sell.

Buyers and tenants are aware of the Covid-19 impact on their finances, yet this hasn’t deterred their resolve to own property and they remain optimistic about property as a worthwhile investment.

There is an overwhelming perception that good deals can be found in the market, particularly with the interest rate at an all-time low.

This is positive news for the property industry as it indicates an optimistic consumer outlook. It also shows resilience in the ‘desire to purchase’ of consumers who have set this as their life goal, and this exceeds the negative sentiment associated with the pandemic.

What the Covid-19 crisis calls for, is the ability to turn a climate of uncertainty into possibilities for innovation. A sea of opportunity awaits and working together in new ways is the key to making these new opportunities a reality.

See the full report here.