Property owners over-valuing their assets Raad believes commercial property owners are still over-valuing most of their properties, resulting in vacancies which become liabilities. “Everybody wants more for less and unless we understand the new age philosophy, it could be easy to be left behind when the next market upturn happens.” In the residential housing market, there is demand in the under R5-million bracket and Raad believes that the pandemic has led to a change in the way homeowners see their homes. “Residential homes are more valuable with people not being able to travel, and spending more time in their houses. People are investing in their properties as a result.” However, with the amount of rental property available, in both commercial and residential, sellers need to make sure their pricing is correct as buyers are looking to seize opportunities that they find value in. We have seen a massive increase in buyers and they are looking for value. Covid-19 deaths leading to deceased estate disposals With close to 100 000 deaths relating to Covid-19, Broll has handled increased numbers of deceased estate disposals. “We are seeing this country-wide predict that this will continue for the next year or two as heirs decide to cash in the portfolios.” Interest rate fluctuations Interest rates will fluctuate, however Raad believes it is the sentiment that will ultimately drive rates. “The opportunities are happening right here, right now, and it is always best to marry a great idea with a reasonable interest rate. The key fundamental will be how quickly buyers and sellers can mobilise ideas to turn the tide.”
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