LOW INTEREST RATES WILL CONTINUE TO DRIVE THE MARKET Industry experts share their insights into trends shaping the property market outlook for the new year ahead.
COVID-19 has accelerated change in the property industry, focusing sharply on safety, socio-economic disparity, and wellness amid a backdrop of global economic uncertainty. A PWC report highlights how the year ahead will be "a crucial moment" to showcase leadership and drive change.
The US report details how the pandemic has accelerated many existing trends like "retail footprint reductions, while it spawned new ones such as an increased focus on social justice and health and wellness, and stopped others in their tracks like the appeal of big cities".
Byron Carlock, PwC Partner and US Real Estate Practice Leader says, “Now, more than ever, the real estate industry has the chance to take the lead in using planning and development skills and investment capital to reshape our work and lifestyle environments. These tools can be used to address societal issues of safety, green space and racial equity. The gauntlet of responsibility is ours to embrace, and industry leaders see the opportunities and are responding with investment and leadership..
"It details key considerations like "exodus to the ‘burbs, Work from home changes office outlook, the essentials or safety and wellness, the need for social justice and racial equity, how and why stores will still matter, and the ongoing need for affordable housing - all reflecting a similar pattern at home as local industry experts weigh in on the trends shaping the property industry in South Africa.
The unexpected property boom created by a rate-cutting spree by the South African Reserve Bank to aid the pandemic-hit economy raises the question about if and when a market slowdown will happen - with some predicting the slowdown will be inevitable.
“The reality is that the economy is under pressure and many people are battling financially. Unemployment is on the increase and the Covid relief programme offered by the government is ending,” says property expert Jaco Rademeyer.
“There’s no more UIF TERS help, payment holidays are over, and for many, a bonus or salary increase will be out of the question this year. Christmas is also around the corner and many are only now truly beginning to feel the effects of a very tough economic situation.”
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