The listed property sector has taken a pounding throughout the Covid19 lockdown, the reaction of affluent investors is to hurriedly move their funds into high-end brick and mortar instead.
As per Retha Schutte, Regional Executive of Pam Golding Properties Pretoria says that in Pretoria, it is evident that there is a surge in interest recently in the newly-built, off-plan duplexes and apartments in the higher end lifestyle developments that are within the Pretoria area.
There are a few problems that commercial property owners and Real Estate Investment Trusts have experienced when the lockdown was imposed. The lockdown has prevented most tenants in retail, offices, and restaurant premises from being able to operate, which further led to huge retail losses.
In retail, we know that the Edcon Group is now in business rescue. Massmart has been carrying a R1.1 billion loss even before lockdown. Woolworths has been pushing their landlords for rent concessions and Flight Centre has closed close to 90 retail outlets across South Africa.
The impact of all of this boils down to one thing: the increase in the need to work from home.
There is a shift in residential planning priorities which makes us have to consider the changing nature of the workplace. There is a definite impact on commercial property because it may be likely that a number of temporary lockdown measures will become the new ‘normal’.