House-hunting in the time of Corona | SA declares disaster to stem spread of infections
Category Current affairs
South Africa has declared a state of emergency in response to the Coronavirus COVID-19, as the number of cases in the country spiked to 61.
On Sunday evening President Cyril Ramaphosa announced crucial measures to stop the spread of the virus including the partial closure of SA's borders with visas cancelled for foreign nationals from high risk countries including Italy, South Korea, Spain, Germany, the US and UK, as well as China.
Other measures included banning visits to prisons, closing of schools until after the Easter weekend between 10 - 13 April, as well as prohibiting events that involve the gathering of more than 100 people.
While markets swung wildly in the past week, seeing the worst crash since 2008 - industry experts previously forecast minimal impact to the residential property market, in comparison to other sectors such as tourism, retail, mining, manufacturing and transport.
READ: Coronavirus in SA | What the expected impact is on property sales
Ministers who are at the frontline of coordinating SA's response to this crisis will be briefing the nation on Monday morning, where they will unpack details in relation to the measures announced by the president. Declaring a national disaster frees the state up to utilise funds and systems without the usual red tape required for approval. Whether economic stimulus measures will be put in place as a result of the coronavirus impact remains to be seen.
In the face of the onslaught of the Coronavirus, three of the biggest Arab economies pledged about "$47 billion to limit economic damage" to their economy due to the outbreak, while Australia's federal government has announced a "$17.6bn economic stimulus package, equivalent to 0.9% of GDP".
SA's economy shrank by 1.4% in the fourth quarter of 2019 - as consumers remain under pressure. This with an interest rate cut in January, with the possibility of a further rate cut in March now almost certain, with a COVID-19 fallout intensifying this prospect) - as Moody's is set to make a call on downgrading SA's credit rating on 27th March.
Safeguard against becoming infected
While businesses have been asked to put measures in place to stem close contact that could spread infection, with Ramaphosa advising the nation to swop handshakes for elbow bumps. It raises questions at the grassroots level of the property market, for those needing to attend or conduct show houses.
After confirmed reports that the coronavirus has landed in South Africa last week, Regional Director and CEO of RE/MAX of Southern Africa, Adrian Goslett, cautioned the service industry to take the necessary health precautions to protect against infection.
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Being a marginally controlled environment that enables all parties to take the necessary hygiene precautions, Goslett says no offense should be taken if agents refuse to shake hands at this point.
"Though I would not advise anyone to panic at this stage, it is always advisable to practice good precautionary measures against infectious diseases, especially when working in the service industry such as our own. The health of our clients and our network is our top priority, which is why we recommend that our agents carry an alcohol-based hand sanitizer with them when interacting with clients to avoid spreading germs," he says.
"I, therefore, urge buyers and sellers not to panic. Practice good hygiene habits when going into public spaces and to take the necessary precautions to contain the spread of this virus," he says.
Author: P24
