Coronavirus is the most talked about subject in the world at present. Ravaging populations and healthcare around the globe, with cascading impacts on several industries, this disease has brought first-world economies’ to their knees. These are unprecedented times and no matter where you find yourself, insecurity reigns.
In South Africa, a National 21-day lockdown was declared on the 27th of March, shortly after the first cases of Coronavirus emerged. The first recorded case within our borders was an SA resident returning from Italy with his partner. While the virus started out in Wuhan, China, Italy has been hardest hit in terms of pandemic casualties. Economic pundits predict a grim future for the country as it recovers from the current state of emergency.
Having learned from other countries who are fighting the pandemic, South Africa took swift action in declaring the critical lockdown period. Experts cite major socioeconomic and demographic differences between our country and the Asian and European regions affected by the COVID-19 pandemic. The important differentiator here is the demographic age group.
In Italy, a large percentage of the population is over the age of 60. Older age-groups are particularly affected by the disease, sadly, many elderly people have succumbed to the symptoms of COVID-19. The greatest advantage our country has in the fight against coronavirus is our young population and the early official response to stopping the spread by staying indoors and observing best practices when moving around.
What does this all mean for the SA housing market?
While the arrival of the disease in SA is taking its toll on an already fraught economy, experts maintain that the residential and property market will not be massively impacted compared to the tourism, retail and transport industries. A new reality has dawned on our economy and people are justified in feeling anxious, but property has always been a resilient investment, retaining stability compared to other equities.
Regardless of the situation, property experts agree that housing will remain a “highly valuable” asset because people will always need accommodation. The property market is likely the first industry to bounce back when economic conditions improve, so those thinking of cutting their losses should consider the long-term possibilities and implications carefully.
Need advice about investing in property during these uncertain times? Get in touch with Percy Mphaho – Gondovect CEO.