It's time for a 'New Deal' strategy for property development and construction
We have a choice to build ourselves out of this crisis or to accept the loss of a critical industry, says Deon van Zyl of the Western Cape Property Development Forum .
The Covid-19 crisis will be looked back on as either a turning point in the way South Africa empowers the development and construction sectors to build or the point of the final demise of the strategic capacity of the civil and building construction sectors in South Africa, says Deon van Zyl of the Western Cape Property Development Forum (WCPDF).
During the Great Depression, the USA government came up with the New Deal Strategy that fast-tracked fixed-capital investment projects. This protected and grew the construction sector and, at the same time, enabled the sector to employ people desperate to earn wages.
The Covid-19 crisis gives South Africa the same opportunity, and we have a choice to build ourselves out of this crisis or to accept the loss of a critical industry in South Africa.
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Cancelled sales and expired leases: Your lockdown FAQs answered
UPDATE: South Africa is now in its second week of Lockdown - with unconfirmed questions about whether the lockdown will be extended after 16 April.
As frightening as what the COVID-19 is, it is also proof that we can all come together and unite. During this time, experts have all come out to give advice, health workers doing their very best to heal those in need and everyone just going the extra mile to make sure that their fellow neighbour is taken care of.
"There is something poetically beautiful yet daunting about the entire world going through this unprecedented time," says Mike Greeff, CEO of Greeff Christie’s International Real Estate.
Greef offered these answers to pressing property-related questions that you might be having.
"We are all trying to navigate our way through this pandemic, and it is important to note that the information we are supplying is relevant for now – things are constantly changing and with that, information too.
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Expect further rate cut in buyers' market, as property resilience shows in turbulent times
South Africa’s rand broke the R19.00 /$ mark last week, thanks to Fitch which joined Moody’s in adding to SA’s economic woes due to the country's inability to strengthen its fiscal position.
As frightening as what the COVID-19 is, it is also proof that we can all come together and unite. During this time, experts have all come out to give advice, health workers doing their very best to heal those in need and everyone just going the extra mile to make sure that their fellow neighbour is taken care of.
In our post-Zuma economy, South Africa looked set to remain in a uniquely precarious position for some time, compounded by a contentious wage bill cut intended to curb public sector expenditure; load-shedding - which has effectively become another form of 'value-added tax' on consumers, and increasing debt burden. With the new threat to the economy that COVID-19 poses, our Finance Minister’s thoughtful, conservative Budget looks set to be obliterated, seemingly overnight.
The ongoing emerging markets selloff brought on by the failure in confidence on the back of the Covid-19 fallout leaves SA with nowhere to hide - but conditions are working to bring about a rare silver lining.
Jacques van Embden, Managing Director at Blok property development firm says, “We are living in fearful times, and consumers are understandably uncertain over what the future may hold. However, if there is one thing history has taught us, it is that the economy will eventually recover; and that property is one such asset class that shows stability over the long term.”
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