Tyson Properties

The South African economy was already under pressure before the expected downgrade and Covid-19 and there is going to be a lot of uncertainty about job security, which will impact the banks’ decisions to lend money. This will reduce the number of sales being concluded and affect property prices as it did in 2008 with the global financial crisis. We are, however, not anticipating the impact to be as severe as it was then, because in 2008 we came off a very buoyant market as opposed to the subdued market we have been working in lately. International buyers only make up a small percentage of all the sales in SA and we were already seeing a decline before the downgrade, owing to concerns about land reform and investment security. The downgrade will further affect this. We may see some international buyers taking advantage of the weaker rand but international travel restrictions will hamper this.

Sellers should re-enter the market sensibly after lockdown. There will be more stock because of job losses so it is crucial to price properties correctly. There will be fewer buyers and a bigger selection to choose from. Working on a sole mandate will allow real estate companies to invest more in the sale through video tours and digital marketing. Tyson Properties agents are ready and trained to deal with sales and rentals under strict coronavirus guidelines. – Chris Tyson, MD, Tyson Properties