Businesses in these areas in South Africa are under the most financial pressure
First-quarter 2021 data from FNB’s Commercial Property Broker Survey shows which major metropolitan areas in the country are still recovering from the impact of the Covid-19 pandemic.
The survey points to financial pressure amongst property owner-occupiers remaining high even after lockdown has been eased. The estimated percentage of sellers selling in order to downscale due to financial pressure remains relatively high compared to the pre-lockdown surveys, although it did not rise further in the most recent one, the lender said.
The unchanged percentage, read in conjunction with other key data, may point to a peak in the level of financial pressure-related selling being reached, and possibly some mild decline in the coming surveys, it said.
FNB surveyed a sample of commercial property brokers in the six major metros of South Africa, namely City of Joburg and Ekurhuleni (Greater Johannesburg), Tshwane, Ethekwini, City of Cape Town and Nelson Mandela Bay.
“We ask respondents for their perception of the major drivers of “movement and sales activity” in the owner-serviced property segment,” said FNB property strategist, John Loos.
“It isn’t an exact science, therefore, but gives a broad picture, and what comes out of it yet again is that by far the highest percentage of owner-occupiers are still perceived to be selling or relocating influenced by financial constraints/pressures, i.e. 65.2% in the first quarter 2021 survey.
“This is almost unchanged from the previous 65.33%, but 22.1 percentage points higher than the 43.1% recorded in the first quarter of 2020.”
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