From our CEO: Open real estate for the economy and jobs

You will probably have seen reports about the real estate industry's efforts to be allowed to operate fully in Level 4 or at least Level 3 of the lockdown, and not only in Level 2 as is currently proposed. And we have made some progress, with various links in the real estate value chain now being functional again.

For example, although there have been some snags, the deeds offices have re-opened and conveyancers are allowed to work and lodge transfers related to the sales made before and during lockdown by those agents who have determinedly been making use of technology to conclude new leases and home sales even without being able to conduct show days or personal viewings.

It is also now possible in most instances to obtain the tax and rates clearance certificates needed to effect those transfers, and in terms of the latest Level 4 directive from government, tenants and buyers can even move into their new homes now, as long as they obtain the necessary permits.

Mortgage originators and banks have also been of great assistance to us in getting home loan applications processed and approved, and some banks have even announced that they will be conducting physical property valuations now where these are necessary for a bond to be approved.

The fact remains, though, that the whole industry is currently only limping along like the victim of a very serious accident who is grimly and bravely trying to regain full mobility - and the reason is that estate agents and agencies, who are the main drivers of that whole value chain, are not allowed to operate normally. 

This seems incongruous to most industry leaders and is the situation we are working to change, not only to preserve the livelihoods of around 42 000 agents and their families and support staff, but because real estate accounts for a huge percentage of SA's economy and has the capacity to generate large numbers of much-needed jobs.

We are not just being selfish. The latest statistics show that estate agents conclude at least R200bn worth of home sales a year, giving direct rise to at least R175bn a year of new home loan business for the banks as well as billions more in transfer duties, legal fees, bond repayments, moving costs and so on. Rental and management agents contribute at least another R1bn to the fiscus and in total, the real estate industry directly accounts for between 8% and 10% of SA's total GDP, which was R3,1-trillion last year.

On top of that, the sector is one of the best financial and employment multipliers, with every home sold or rented also giving rise to many thousands of permanent employment opportunities - and earnings - for those who provide immediate and ongoing services and products such as electrical, gas and plumbing inspections and repairs, additions and alterations, furniture, appliances and delivery, security and maintenance services.

Then, when the property market is thriving, the provision of new housing to meet rising demand has the potential to generate even more jobs, in construction, in companies that manufacture and transport building products like cement and bricks, and in other sectors that provide finance and professional services to home builders and buyers.

In short, there is huge power in real estate to immediately start rebuilding the economy and to help many South Africans find decent jobs to support themselves and their families. This is why we want our industry to be allowed to function properly as soon as possible - and we are calling on everyone to support us.