HOW TO RIDE OUT THE TIDE
The inside track from developers and agents:
Horizon Capital’s David Sedgwick:
We are entering a period of economic uncertainty like we haven’t seen before. We’ll continue to ensure that our new developments are adaptable to the environment we operate in. Our buildings now come standard with back-up generators and, in some cases, off-the-grid water supply. Operationally, a lot more engagement is being done virtually via WhatsApp video calls, FaceTime and Zoom.
Seeff George licensee Pieter Jordaan:
The Garden Route is benefiting from the semigration trend, which is likely to take off again within a
few months, following the lockdown lifting. Prices are well below those of alternatives such as Cape Town. Sellers are already taking lower offers of up to 10% below the asking price. Agents are taking full advantage of digital tools to correspond with buyers and sellers. The rental market has also been quite active.
Greeff Christie’s rentals manager Mark Burt:
Investors should look for opportunities that generate a rental return in the region of R8,000 to R18,000 per month. This seems to be our least affected segment, with a vacancy rate of only 7%. Remember to look after good tenants
– this may be the only factor you can control in an ever-changing market.
Greeff Christie’s International Real Estate sales director Tim Greeff:
Investors who purchased for shortterm rentals should now consider long-term letting because tourism will be considerably slower during the course of 2020.
Le Parc Residential Estate’s Adele Combrinck:
For marketing and sales during lockdown, our team has harnessed all digital platforms and is distributing content that includes images and virtual and video tours of the estate and finished properties.