Plettenberg Bay Estate Agents face challenging times

As the economic noose tightens, the number of Estate Agents in South Africa has declined quite dramatically. A recent report from the Institute of Estate Agents reveals that the number of registered Estate Agents has declined from 80 000 to 38 000 in the past year.

While times may be tough at present, those Agents who can survive will no doubt benefit in future. It is highly unlikely that the number of Agents will dramatically increase when the market improves. The new Agent qualification criteria, the costs of training, as well as expected increased EAAB registration fees, will ensure that only the serious and professional agents will remain in the industry.

The Pettenberg Bay property market has not been immune to the effects of the current recession, and a number of agencies have already closed and left town, while one has indicated that they will operate from an Agent's home until the market improves. Amongst those who have closed their branded offices are Durr, Aida, Rawsons, Bitou Properties, ERA, and Jawitz.

Using 2007 sales as a benchmark, the local property market shrunk by two thirds in 2008, and 2009 is only looking slightly better with sales expected to be no more that 50% of the 2007 levels. For many Agents and Agencies its now a matter of getting through 2009 and hoping that 2010 will show a marked improvement. One thing is certain - the shakeout will continue, with some more casualties expected, before better times return.