By now, we all have some idea as to how COVID -19 has affected the South African economy, as well as the global economy. Rob Downey, a Master Agent working with Chas Everitt in the Constantia market, took an economic snapshot of the market and compared property sales over the same first-quarter period for 2019 and 2020.
While 2019 was a tough year, predictions that 2020 would start showing positive relief to what was already a quiet market, was short-lived with the advent of COVID -19 in South Africa. The country was finally placed in lockdown on the 26 March, closing the Deeds Office and halting any transfer of property for over a month.
Reviewing the Constantia market and looking at Property 24, we identify 248 residential property listings on the site. This figure excludes a handful of vacant land listings. Rob noted that this reflects a reasonably consistent number over the last 6 months.
The price range of property “FOR SALE” is reflected as follows: –
The registered sales for the period between 1 January and 31 March, shows how the impact of COVID-19 is having a dramatic influence compared to the same period last year. This weak trend is bound to continue through April and possibly through to the next three months as we are only expecting Estate Agents to be fully operational within a few weeks time and the Deeds Office also going back to work on a ‘skeleton staffing’ basis to register transfers.
We have taken figures from CMAinfo.co.za, and looking at actual property sales, (not transfers) within the Constantia market over the period of 1 January to 31 March 2019 and compared with the same period in 2020.
The Constantia team at Chas Everitt is feeling positive about the market. After the impact of the lockdown, we are now starting to field a greater number of enquiries on properties we have listed for sale. This includes buyers who had cooled off before lockdown who are feeling more confident that property prices may now be more attractive. During the lockdown period we have been in a position to take any offer on a property, protecting the Buyer and Seller with a ‘subject to viewing’ clause in the offer to purchase. Our Cape Town South franchise was able to conclude three sales on this basis during lockdown as well as two rentals.
We are of the opinion that the property market will pick up quickly once all parties are allowed more freedom of movement, and Estate Agents are allowed to resume their activities, mindful of the ongoing needs for social distancing and precautions as well as the Deeds Office been up and running. Our Rental Manager, Taryn Retief, is also receiving numerous rental enquiries from Sellers who have decided to rent rather than sell during this period. Should you need any property related advice, please contact Rob Downey on email@example.com