4th Quarter 2022 FNB Property Broker Survey – Property Brokers perceive the financial pressure-related selling motive to have been relatively stable recently. But selling in search of more reliable utilities and municipal services has become a far more important selling motive of late.
In this note, we continue with the 4th quarter 2022 results of our FNB Commercial Property Broker Survey, which surveys a sample of commercial property brokers in the 6 major metros of South Africa, i.e., City of Joburg and Ekurhuleni (Greater Johannesburg), Tshwane, eThekwini, City of Cape Town and Nelson Mandela Bay.
Focusing on key drivers of movement and sales activity in owner-serviced properties, the survey results show financial pressure to still be the biggest single driver. This driver had previously been diminishing in significance until early-2022, but has moved more-or-less sideways in recent quarters. What has noticeably changed in recent quarters, however, is a significant rise in selling to relocate in search of better utilities and municipal services, for instance electricity and water, hardly surprising as such services deteriorate at varying speeds in various areas/regions.
We ask respondents for their perception of the major drivers of ‘‘movement and sales activity’’ in the Owner-Serviced Property segment. They estimate the percentage of movement and sales that they believe would take place for a particular reason. The total percentage of all the reasons can add up to more than 100%, because businesses can be selling or relocating for more than one reason. It isn’t an exact science, therefore, but gives a broad picture, and what comes out of it is that the highest percentage of owner occupiers are still perceived to be selling or relocating influenced by financial constraints/pressures, i.e., 31.68 in the 4th quarter. This is very similar to the 32.45% recorded in the 3rd quarter 2022.