Large Cut in Agent Numbers

The information in this article is courtesy of Business Report (Slump in property market cuts estate agent numbers – 8 June 2009)

The slow property market and low sales levels have resulted in the number of registered real estate agents in South Africa to drop with more than 50% - from 84 000 agents in 2007 to 38 000 this year.

Willie Marais, the national president of the Institute of Estate Agents of South Africa, explained that this was the number according to the Estate Agency Affairs Board computer, suggesting that the number of active agents is far less.

Marais added that the number of agents is not likely to increase even if the economy shows some improvement. This is mainly due to the fact that credit extensions legislation would limit the number of property transactions and the profitability of agencies. Also, new legislation governing the training and qualifications of estate agents is likely to convince older agents to retire. This will also reduce the number of new entrants to the industry. Marais also believes that the cost of registration might increase because of the reduction in the number of registered agents.

According to Marais, IEASA has not kept record of the number of liquidations since the property slump, however he thinks that the number of agencies closing down is bigger than we think.