THE CORONAVIRUS (COVID-19) IN SOUTH AFRICA AND THE IMPACT ON THE PROPERTY MARKET
Category Just Imagine Properties Team
THE CORONAVIRUS (COVID-19) IN SOUTH AFRICA AND THE IMPACT ON THE PROPERTY MARKET
Amid the spread of the coronavirus (and the immense media coverage of it) the past week have seen a slowdown in business activity and it has many asking what the impact of the coronavirus would be on the South African residential property market.
Just Imagine Properties is of the opinion that the current climate could impact on the property market in the following ways:
A slow down in business activity impacting on the general flow of income and credit.
A likely decline in property sales activity due mainly to fear and uncertainty.
If quarantine measures are enforced, then it would lead to travel restrictions followed by no physical inspections of property and no on- site auctions.
Offer to Purchase contracts could be falling through due to a change in financial ability.
That the drop in house prices would depend on the length of the current crisis.
However:
Come to terms with this new reality and adopt a positive mindset.
The relative illiquidity of housing means it takes longer for property to transact which means property will take longer to transact and sell off less likely.
Focus on private inspections rather than open house shows.
Not all markets will be equally impacted - segments of the property market will remain active.
The full impact that the virus could have on the housing market is yet unknown as the length of the continued coronavirus outbreak is also unknown.
It would be of the utmost importance to price property correctly to ensure the sale of it in tough times.
For prospective buyers this could be a time in which they could procure real bargains.
Author: Just Imagine Properties Head Office
