Property 24/10 - 505

Reliable Asset Valuation | Why the highest evaluation is not necessarily the best
Now, more than ever, it is has become essential to be able to evaluate and easily analyse assets and their value to make informed decisions on whether to buy or sell.

South Africans are facing the immense uncertainty during these challenging times caused by the Corona Pandemic. While our economy was headed for a recession even before the pandemic, the picture has become even more grim with a forecast of an estimated 6% to 7% contraction. And while FNB forecasts a -5% decline for the property market in 2020, it says this forecast negative capital growth does not tell the full story of market weakness.

In a downturn, Property Market Values can deviate dramatically from the market “equilibrium” value, a value which can be far lower than the market in recessionary times, due to strong resistance by the market to dropping values to make the sales, says FNB Economist John Loos.

Alert Level 3 Rules | What can the Real Estate industry expect?
Key real estate stakeholders are awaiting the final Alert Level 3 regulations to be published – with many preparing to get back to work from 1 June in anticipation.

“One of the greatest challenges we will face with the move to level 3 – which will enable the return to work of up to 8 million people – will be the increased risk of transmission...” These were the words by President Cyril Ramaphosa as he addressed the nation on Sunday evening, stating that South Africa will be moving to Alert Level 3 as of Monday, 1 June.

The expectation is that "every profession that is not specifically prevented from trading, should be able to proceed".

But as it stands – current published Alert Level 3 regulations state full Real Estate services are not allowed – specifically residential property sales and show houses.

ST and Estate residents concerned about Covid-19 risk as new tenants or owners move in
ST trustees and the directors of Home-Owners’ Associations cannot restrict or prevent occupation of new tennants, now that restrictions have been eased. Experts share advice.

South Africa is preparing to move to Alert Level 3 from 1 June with the restrictions on movement for citizens eased up considerably. The full regulations for Real Estate industry have yet to be confirmed.

People are however allowed to move to a new place of residence, with the window restriction up until June 7 now no longer in effect. The most recent moving directions, gazetted on 14 May, apply to any home buyer who has taken transfer of their new home since the Level 5 lockdown began on 26 March as well as those who took transfer before that but were unable to move, and the members of their immediate households.

They also apply to any tenant, residential or commercial, who signs a new lease, as well as anyone with an expired lease who wishes to move into shared accommodation with friends or family, anywhere within the borders of South Africa.

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