Coronavirus - What the expected impact is on the property Market
The arrival of the Corona virus COVID-19 to South Africa's shores, asconfirmed cases escalate, may only add to SA's stalled economy, according to experts.
Impact on the residential property market is expected to be relatively small when compared to its effect on other key sectors.
In South Africa, it will affect some of our crucial commodity exports. What is unpleasant for the economy, is unpleasant for the residential and commercial property markets, so it now seems likely that house prices will decline in nominal terms this year.
Overall, Investec forecasts SA's economic risk has increased in the face of rate cuts and poor credit ratings.
Covid-19 is now expected to have a much greater impact on global economic growth than previously thought.
While businesses have been asked to put measures in place to prevent the spread of infection, with Ramaphosa advising the nation to swop handshakes for elbow bumps. It raises questions at the foundation level of the property market, for those needing to attend or conduct show houses.
We caution the service industry to take the necessary health precautions to protect against infection. We would not advise anyone to panic at this point, however, it is always advisable to practice good precautionary measures against infectious diseases, especially when working in the service industry such as our own.
We urge buyers and sellers not to panic. Practice good hygiene habits when going into public spaces and to take the necessary precautions to contain the spread of this virus.