Beleaguered real estate industry hopes for Deeds Office reopening
Property transactions have been stalled and no revenue is flowing through to real estate agencies and their staff.
The struggling real estate industry is hoping that the likely reopening of the Deeds Office under the eased Level 4 lockdown regulations will offer it slight relief and enable the stalled processing of property transactions to begin moving ahead again.
Reopening of the office has been added to the Level 4 draft framework, which will be ratified over the coming week after input is received from business, unions and wider civil society. Processing property transactions will also enable commission payments to begin flowing again to estate agencies and to individual agents.
During lockdown the industry has seen its revenue fall to near-zero. Real estate industry heavyweight Pam Golding, for example, has cut support staff salaries by around 30%. Real estate agents typically work on a commission-only basis.
Deeds Office reopening would be ‘big and positive’
Vuyiswa Mutshekwane, chairperson of the National Property Practitioners Council, told Property360 that reopening the Deeds Office would be “one big and positive move”. But she added that there were still questions around how the rest of the property value chain, including real estate agents, would be affected going forward.
It has been painful for agents and others in the value chain, who have not been able to process commission monies earned or take transfer of their properties, she said.
Speaking to Property 360, Bill Rawson of Rawson Property Group said if the Deeds Office opening is formalised it would be “fantastic news as there is an existing pipeline of work that was just stopped“. It will also allow those estate agencies that have been doing virtual showings, negotiations and sales to now register these.
New virtual technology to help buyers and agents transact
According to Andrew Golding, head of Pam Golding Properties, the company has been working on developing a range of online technologies that will enable its agents and office staff to continue listing and showing properties to potential buyers during lockdown and social distancing.
Among its strategies is enhancing the remote visual experience for buyers. “Key differentiators which we have incorporated include use of the leading Matterport 3D camera system. This creates detailed floor-to-ceiling perspectives which give the viewer the impression of actually being inside the property,” he explained.
Golding said the system provides “realistic walk-through with an appreciation of floorplan, space and other key features of the home”.
Some higher earners are staying out of the market
In an interview with Fin 24 in early April, Berry Everitt of the Chas Everitt property group said the residential property market was quieter, but deals were still being done.
“Trends we see developing are that some higher earners who have had their wealth diminished by falling equity prices are staying out of the market, while others are inclined to increase their property holdings now in recognition of the fact that, while growth in this sector is slower, it is still a lot less risky than the stock market. In addition, it affords investors many opportunities for tax relief,” Everitt stated.
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