Real estate industry pleads for relief

The real estate industry has joined forces to implore government to reconsider its decision not to consider the industry to operate normally under Stage 4 lockdown.

The decision affects not only the thousands that are employed within this sector, but also has a far reaching impact on the economy as a whole, says CEO of RE/MAX of Southern Africa, Adrian Goslett.

“Real estate is unquestionably a multiplier and enabling industry. During the 2007/08 financial crash in the United States, it was real estate that lead the economy out of the recession and back to economic health and prosperity. We believe that this sector can assist South Africa in doing so again.”

The industry contributes about five percent of South Africa’s GDP and has about 42,000 people working in the residential real estate sector.

There are many other organisations, industries and businesses that rely heavily on real estate sector to trade – banks, originators, conveyances, and many more which feed off real estate.

“Without us, their industry stands still. If they stand still, they will lay-off people and further contribute to rising job losses.”

The Deeds Offices processes property transactions to the value of R20 billion every month.

Goslett said the number of distressed sellers was on the rise and if people were unable to sell their properties, then they could not raise any capital and ran the risk of running into debt.

“In my letter to Minister Sisulu at the Department of Human Settlements on April 27, I outlined how real estate offers minimal threat according to the criteria that were used in establishing the level of risk for each industry. I further outlined how the industry could be regulated to mitigate risk by implementing strict regulations at each level of easing lockdown restrictions.

“After the ministers have reviewed our submission, I feel frustrated to learn that even garden services are allowed to operate before real estate. These businesses bring crews of 6-10 people at a time through your home, whereas real estate can be limited to 1-1 or even 1-0 if agents are allowed access and are able to do virtual open houses using technology.”

Seeff North Coast managing director Mark Johnson said estate agents should be extended the same privileges as other professionals.

“We believe we can operate and observe all of the Covid-19 precautionary measures. Most of our work can be done remotely, except for showing properties, and we believe we can do so without putting ourselves or our clients at risk,” said Johnson.

The industry employs about 150 agents in this region alone, plus office staff, and many more are dependent on their incomes.

Fiona Crago Estates principal Fiona Crago said it was absolutely shocking that industries like garden services would be allowed to operate before estate agents.

“None of it makes sense to me. Any contact with clients is made by appointment. These are generally couples and drive their own cars. We are sensible people and can take every precaution to ensure the business is conducted safely,” she said.

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