About Us	Search	Advertising

	Brought to you by:

TIMES are about to get tougher for many Helderberg families already under pressure from the dramatic increase in the cost of living. Some local companies in the residential property industry have begun retrenching staff as a way of dealing with the economic slowdown across the country.

A major law firm that derives a large portion of its income from property-related transactions confirmed it has retrenched staff while a national estate agency group has closed its office in Somerset West.

Smith Tabata Buchanan Boyes (STBB) has retrenched a number of staff, including four out of a complement of 27 at the recently amalgamated office in Somerset West.

"The market is having a difficult time and property too. The fact is [retrenchment] has to be done so the business can go forward," STBB director Christoff Jooste says.

"Business and commercial circumstances dictate that unpleasant decisions have to be made at times. There will be many employers facing this."

"Natural business cycle"
Jooste says while the situation is difficult across the country, the Helderberg has the advantage where property is concerned of remaining an attractive place to live and of "high asset value".

"This is part of the natural cycle of business. As such, employers that need to retrench should go about it clinically, but also in a way that people would want to return should the opportunity arise."

Sotheby's International Realty closed its office in Somerset West a few weeks ago and operates from the Stellenbosch branch.

Broker principal Kevin Layden confirmed that the economic climate was partly to blame. Some staff could be accommodated at the Stellenbosch branch and two agents left the company.

He says the market conditions were such that he expected to see a "dramatic" departure of estate agents from the industry towards the end of the year.

Layden says Somerset West was a very difficult market to do business in because of agencies' eagerness to share mandates, meaning an office had to do a higher turnover than other similar regions.

The situation was exacerbated in that, in relation to Stellenbosch, Somerset West was a highly bonded area.

According to a report on industry website realestateweb, around the country service providers in the property industry are taking pain. Estate agents and mortgage originators, who rely on commissions, are struggling to secure sales, it said.

"Thousands did not renew fidelity fund certificates this year, according to the Estate Agency Affairs Board, and many more are toying with the possibility of leaving the market," it reported.

	Back to top
© Tel. (021) 853-0211 Fax. (021) 853-0234 2003 Somerset Press (Pty) Ltd on all information and photographs.