Top Agency Closes Two Offices

The information in this article is courtesy of Realestateweb (Jawitz retreats in Cape Town – 3 December 2008)

The tough market has yet again force an agency to close it doors and this time it’s one of the top estate agency brands. Jawitz Properties, which is well established in Gauteng, recently closed two of its offices in Cape Town – Jawitz Hout Bay and Goodwood.

According to the CEO, Herschel Jawitz, this was a tough business decision and he added that even though these offices closed, the agency still has a strong presence in Milnerton and surroundings. Jawitz Properties also has offices in Blouberg, Sea Point, Pinelands, the City Bowl and Hermanus.

Jawitz said that the Hout Bay office was closed because of sales date, which showed that the area averaged around 10 to 12 sales a month. Also, the volume of sales is down by about 50% with April, May and June down around 70% year-on-year. This means that there were about 60-70 agents fighting for around 10 sales in this suburb. This has caused the number of agents to fall dramatically – from an estimated 150 estate agents.

In Goodwood, a lower-income area, buyers have been under a lot of pressure. At a price of R600 000 to R700 000 you have to pay 5% deposit (around R50 000) plus costs.

Jawitz said that no agencies have been spared and the tough times have become even worse with the pie shrinking dramatically. However, he said, his company still has plans to expand in the Western Cape and elsewhere. He is positive about the future and stressed that the competition in the political arena, lower inflation and an interest rate cut could turn things around.

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