The future of the real estate industry post COVID-19
Category Property news
Overnight, the world as we know it changed forever, including how we buy and sell homes, says Mike Greeff, CEO of Greeff Christie's International Real Estate. One thing that was critical to the survival of the industry was our ability to innovate and adapt.
The short-term human and economic impact is undeniable. Although the economy has slowly opened up again, it is only once the risk to human life has reduced, that we can take steps towards a fully productive economy. In the meantime, we need to envisage what this 'new normal' might look like.
The future of the real estate agent
Prior to COVID-19, the real estate industry was experiencing a shift due to technological advancements. With the introduction of new programs, some buyers and sellers saw the benefit of cutting out the middleman and traditional agents had to ''verify'' their value to remain competitive against tech-first services.
Now more than ever, consumers rely on the expertise of a professional agent. Beyond the scope of the transaction, agents must educate their clients on the unpredictable market and the new regulations of COVID-19. By maintaining an honest dialogue upfront and consistently throughout the process, agents will empower their clients to move forward with their decisions, despite obvious challenges.
The average person will only be involved in a few real estate transactions during their lifetime. Most homebuyers do not have the experience or knowledge to execute a transaction of this magnitude on their own, especially in a tumultuous market. Agents will need to work twice as hard to earn the trust of clients during this time, since not many are wanting to invest given the economic uncertainty. It's imperative that agents educate themselves on the latest technology so that they are able to consistently meet their clients' demands and expectations.
Ripple effect of the pandemic on the housing market
Greeff predicts that ''liveable, low-density areas will become increasingly popular as they offer all the conveniences of urban-living, but with a more appealing lifestyle. Thinking about life post COVID-19, one must be aware that certain practises will remain in place i.e. social distancing, and if you're living in a less populated area, it makes it much easier to adhere to those practises. People might also start thinking about sustainable living more than before and in that case, one can predict a surge in people moving to the countryside. Many have had a shift in mindset and as a result, some people will be looking at ways to change their lifestyle - and that could possibly mean, moving into a new home''.
Jeremy Barnes, South Peninsula Regional Manager for Greeff Christie's International Estate also adds that ''we do expect some folk to come under pressure as a result of the very difficult times created by the lockdown, which will see people reassessing their needs. This may well result in increased market activity as consumers adjust their accommodation to fit their needs, but as always, if a property is priced correctly it will sell within a reasonable period. The fiscal easing has made it very attractive for people to enter the property market, and we fully expect buyers to take full advantage of the value on offer''.
Although the phrase "new normal" has been exhausted, it is a cliché worth paying attention to. The truth is, when the dust from the pandemic settles, we will exist in a new world. How that new world looks is still unknown, but what is for certain is that we will have to adapt in order to survive. If COVID-19 has taught us anything, it's how to communicate virtually and that we can get things done without being in the same room with one another. It has also taught us that we are resilient and can withstand anything, as long as we stand together. We have had to adapt and develop new skills in order to thrive in this new world, and perhaps that's a good thing. Now, we have been forced to find new ways, maybe even better ways, of going about life. This is a time to be innovative and experiment - it's time to find your niche.
Author: Greeff Christies International Real Estate
