Commercial property in the doldrums, awaiting economic tailwinds
20 October 2020
Will the pandemic and subsequent national lockdown lay waste to sub-sectors of South Africa’s property market? Our gut feeling is that the forecast surge in business liquidations and the implementation of countless business rescue processes will ripple through the commercial property sector, while the three million expected job losses will shatter prospects in the residential market. Time will provide a clearer picture; but over the short term we expect small, undiversified property investors to suffer a severe contraction in both rental income and balance sheet valuations.