Lockdown casualties: Smaller estate agencies close shop

As tens of thousands of property practitioners return to work this month, the National Property Forum says many small agencies have closed down since the Covid-19 lockdown started in March.

NPF president and founder Leo Mlambo said most small or one-man-run estate agents, especially black-owned, have had to shut their doors.

“Many were surviving from sale to sale every month.

“They will sometimes sell one house, which was enough to cater for their monthly expenses,” Mlambo, whose organisation represents about 900 principal agents who give jobs to about 4,500 agents, said.

Mlambo estimated that close to 500 of the 900 principal agents would not be in a position to reopen.

Estate agents have been encouraged to conduct virtual property tours and seal deals electronically as the industry returned to work under alert level 3 of the Covid-19 regulations.

National Property Practitioners Council and Black Property Practitioners CEO Vuyiswa Mutshekwane was this week confident that the real estate sector could reopen safely.

About 46,000 property practitioners who are represented by the council have not been able to earn an income since the lockdown came into effect at the end of March.

She said she was pleased that the government had heard their concerns and given the green light to resume operations.

“There are still a lot of challenges relating to getting properties transferred at deeds offices, which are not yet functioning optimally.

“Some law firms are still not operating at full capacity, and the municipal offices open for limited time,” she says.

Pam Golding Property group CEO Andrew Golding said all their offices were fully compliant with measures in place to prevent the spread of Covid-19.

Golding said they would continue to use high-quality virtual tours and iShow days, as well as other technological innovations.

“However, where a buyer wants to physically view the property, we will make the necessary arrangements and again follow the strict protocol guidelines as set out by the authorities,” he said.

He said now that the deeds offices were open and conveyancers were able to carry out the final processing of transactions, that would free up funds for sellers, especially those who were financially distressed.

RE/MAX Southern Africa’s Adrian Goslett said their registered sales were at the lowest they’d been since 2011.

So far this year, registered sales had dropped by 30% on the figures for the same period last year.

Estate Affairs Agency Board CEO Mamodupi Mohlala on Sunday released guidelines on how estate agents should operate during lockdown level 3.

“Physical viewings of no more than two people should only be done when a buyer or tenant has expressed definitive interest in a particular property, and it should be kept brief and in line with Covid-19 health regulations,” Mohlala said.