The Test of Time
Category Industry News
As COVID-19 continues to rattle global markets, a repo rate cut by the South African Reserve Bank, and pro-active measures by local companies provide some relief to beleaguered consumers.
The virus, commonly known as the Coronavirus, is wreaking havoc on portfolios around the world, with many investors weighing up their options. The property market, of course, is no different, with The Agency Property Group's Kyle Leigh believing it is time for communities to support one another first and foremost.
"This really is uncharted territory," says Leigh.
"The number one priority for us is for everyone to stay calm, and be sure to put your health and the health of your family first. We need to see the coming together of communities, we need to support smaller local business, and do what we can to really pull together as a community at large."
Fortunately, we have already seen a number of proactive measures being taken since President Cyril Ramaphosa declared a State of Disaster in South Africa, with local business adapting to the crisis in a positive way - both small and large - while the move by Standard Bank to announce a payment holiday on small business and student loans is an admirable one.
The three-month holiday will certainly provide some much-needed relief to consumer sectors that are crying out for some help in a market that was already struggling before the onset of COVID-19.
Leigh, meanwhile, says that the decision by SARB to cut the repo rate by a full point will also provide relief to property owners during this time.
"Just how much relief this will provide, we don't really know," says Leigh, while admitting any relief at this point in time will be welcomed and may, in turn, help the property industry.
"It does make it more attractive for first-time buyers who may be able to make an investment in property now with easier lending rates. It will also ease local pressure in the market."
Looking ahead, Leigh admits property could actually be an attractive investment to add to your portfolio, with 'safe as houses' seemingly ringing true at a point in time when global markets are bleeding.
"What we are seeing now is unprecedented as global markets are crashing. In the United States, they are looking at a drop of around 35%, while other markets are also haemorrhaging. Property is still an attractive investment and although we don't know what is going to happen over time, for the time being it's looking to be a sound investment."
Author: The Agency Property Group
