What to expect from the property industry post-lockdown
Category Property news
Mike Greeff, CEO of Greeff Christie's International Real Estate says that while the lockdown has had an impact on the property and the economy - both nationally and globally, he is positive about the future, post lockdown. After the President's address on the 23rd of April and the announcement of incrementally easing the lockdown, there is much to be optimistic about. Despite how turbulent things are now, steps need to be taken to ensure that once we reach Level 1 of the lockdown, we are in the best position possible to take advantage of the market.
A number of events that have taken place has created an opportunity for buyers and purchasing conditions could not be more favourable. Carl Coetzee. CEO of BetterBond says that ''any measures that seek to stimulate the market and ease the financial burden on the consumer's pocket is a step in the right direction to buoy the property market''.
Transfer duty is down and as a result, the positive lending climate will continue as banks try to compete with one another. Both repo rate cuts, amounting to 200 basis points, means that buyers can save up to R1300 per month on home loans of R1 million to R2 million, according to Property24. The repo rate cuts, combined with the lower transfer duty means that first-time buyers are now able to get into property and actually afford to do so.
Potential Market Shifts Post Lockdown
The impact the coronavirus has had varying effects on people of all ages and on all parts of the economic spectrum. These effects are long-lasting and will affect many aspects of the home-buying, selling and ownership process for the foreseeable future. It's imperative that we look at that possible changes will occur post-lockdown and how these changes will affect
Multi-generational living
While it was already a trend, multi-generational households may become the new norm for many, especially as COVID-19 has had an impact on jobs, tertiary education plans and retirement planning. Furthermore, homeowners who were thinking of bringing their elderly parents to live with them, may have pushed those plans forward due to COVID-19. They may be looking for a place better suited to their new living situation.
Hometown returns
One of the first trends that became evident on social media when the lockdown began was the large number of young professionals who came home to wait out the virus with their parents. Having left the cities where they work and returned to their hometowns, many of these young people may not go back. If the work-from-home situation continues - or if their jobs are eliminated outright - they may find themselves moving back home for good.
Layout changes
Significant shifts may be on the horizon for the way we live post-lockdown - and they'll likely be reflected in design elements. More jobs and classes may go virtual permanently, more families may choose to home-school, and we will all be more aware of how much of the outside world comes into our homes.
You may start looking for larger houses with an emphasis on some or all of the following:
- Multiple home offices
- Multiple bathrooms
- Shifts from apartments and town homes to single-family homes
This is an unprecedented and challenging time, and no one knows what the future holds. The best and most proactive thing we can do is try to predict all the possible outcomes and arm ourselves with tools needed. It is imperative that we are ready to take full advantage of the market and make the best out of the situation - whatever that may be.
Things will never return to how they were and perhaps that is a good thing, says Greeff, because we will be 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
