PROPERTY: ‘Business Unusual’ for Recovering Estate Agents
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The shake out of the property market is nearly over but the industry decks have been cleared, leaving only the hard core of estate agent ‘survivors’ and opportunities to start anew.
However, says Gerhard Kotzé, CEO of the ERA South Africa property group, it will definitely not be business as usual going forward, and the market will see more creative and innovative ways of delivering service and professionalism, which is good news for home buyers and sellers alike.
Meanwhile, he says, the market situation has already been relieved to some extent by lower interest rates that have reduced the cost of debt servicing although there is only a minor chance of further rate cuts soon.
“And while new mortgage advances remain low, this will change as the economy picks up a modicum of momentum. The latest Absa figures further substantiate this picture of modest recovery, with the prediction that there will be a 3% drop in house prices for 2009 as a whole.”
As it is, he says, the onset of summer has brought with it a more upbeat mood in the property market and agents are reporting a definite increase in sales day turnouts and completed deals, with security villages still being in the greatest demand.
“The bottom line is that we’re entering a new cycle of the market with less speculative activity and more solid growth, serviced by fewer agents whose professionalism will be in demand.”
Business News Sector Tags: Property|