28 May 2020
The National Property Practitioners Council (“NPPC”) welcomes the announcement by the National Command Council that the country will be moving to Level 3 from Monday 01 June 2020.
The initial intention of the hard lockdown was to flatten the curve and provide the opportunity for adequate preparations to be made within the healthcare sector and other economic sectors. Much progress has been made and the country is now better equipped to manage the increased rate of infection that will undoubtedly occur as we enter the winter season.
As the largest national industry trade association we are deeply committed to ensuring and prioritising the health and safety of property practitioners, customers and suppliers’ as we navigate new ways of working to fully safeguard livelihoods, restore operations and support the country’s economy. Accordingly, we are convinced that, with the measures we have recommended, the real estate sector is equipped for a safe return to work.
The members of the NPPC include all the major national industry bodies including: South African Institute of Black Property Practitioners (SAIBPP), South African Property Owners Association (SAPOA), Real Estate Business Owners of South Africa (REBOSA), National Property Forum (NPF), National Association of Managing Agents (NAMA), Institute of Certified Business Brokers (ICBB), South African Institute of Auctioneers (SAIA), Institute of Estate Agents of South Africa (IEASA), South African Business Broking Association (SABBA).
The NPPC has been calling for the immediate return to work for the 46 000 property practitioners that have not earned an income since the lockdown came into effect and we are pleased that the National Coronavirus Command Council have heard our concerns and given the real estate sector the greenlight to resume operations. As independent commission earners, agents do not qualify for UIF or any other relief benefits so relaxation of the lockdown restrictions means that many real estate companies facing the imminent risk of collapse can potentially be saved. We are also in discussions with the EAAB, the Department of Human Settlements and other industry stakeholders with regard to proposing measures to stimulate the industry going forward.
The re-opening of the sector will also inject much needed liquidity into the market which is an urgent need whose importance cannot be overemphasised. Property owners can now trade their biggest asset and unlock much needed capital to fund business activities or given the challenging economic climate many homeowners can look at downscaling to more affordable properties. A return to work for real estate also means a return to work for many downstream activities and sub-sectors linked to real estate like removal companies, artisans including electricians and plumbers and valuers.
The NPPC, through its various member organisations have developed a comprehensive set of health and safety guidelines for the Real Estate Sector that will assist in preventing the spread of infection across our value chain. Principals and practitioners have been encouraged to adopt these guidelines and create their own internal Standard Operating Procedures [SOPs] for all employees returning to work. Protocols have also been developed for property viewings together with client consent forms and tracking and tracing procedures in line with international best practice.
The real estate transaction process requires a relatively low level of human interaction compared to other sectors which will be permitted to operate at level 3. We have carefully assessed the risk of transmission for the real estate sector and believe that the proposed interventions will go a long way to mitigating the spread of Covid-19.
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