Real Estate Activities

The real estate sector’s performance largely depends on economic drivers and has been challenged by slow economic growth during the past few years. The number of companies listed in the JSE’s real estate sectors increased since 2017, but their market capitalisation declined by 64.4% between 2017 and November 2019 as South Africa moved into recession. Between November 2019 and April 2020, property share prices lost 34.2% as the outbreak of the coronavirus severely impacted global and local markets.

Coronavirus

The industrial, commercial and residential property sectors and developments in these sectors have been hard hit by the lockdown following the outbreak of coronavirus, which has resulted in estate agents shutting down as property deals come to a halt, and industrial, commercial and residential tenants unable to pay rent. In some cases they have been given relief in the form of deferred payment holidays, rental discounts and limitations on the possibility of being evicted. With the deeds office and municipalities shut in April, no property transfers were expected to take place, and the backlog may take months to clear. Several listed property companies announced they are postponing or cancelling dividend payments.

Report Coverage

This report focuses on the real estate industry which comprises commercial, industrial and residential properties, as well as property development, property valuation and bond origination. It includes information on the state and size of this sector, performance statistics and corporate actions in the sector. There are profiles of 129 companies including real estate agencies such as Pam Golding, Rawson and Seeff, property funds such as Vukile, Rebosis and Oasis Crescent, developers such as Calgro M3 and Nu-Way and special zones such as the East London Industrial Development Zone and Coega.