MAIN IMAGE: Jeanne-Maré Oosthuizen – GM of Rawson Property Group, Tracy Manning – GM at Seeff Property Group, and Amanda Cuba – COO of RE/MAX Southern Africa
Editor
What is happening in the property market? Is there a role for AI in real estate? Where will we be in ten years? These questions and more were discussed by female powerhouses Jeanne-Maré Oosthuizen, GM of Rawson Property Group; Tracy Manning, GM at Seeff Property Group; and Amanda Cuba, COO of RE/MAX Southern Africa, in a panel at REIS (the Real Estate Industry Summit) last week.
In what ways have consumer behaviours and expectations shifted in South African municipalities?
Tracy Manning: Fundamentally, consumers still want the same thing; buyers want the best deal possible, and sellers wan the highest price in the shortest possible time. I don’t think that’s changed, but the advent of digitisation is certainly a game changer. Everybody uses digital tools today, and our buyers and sellers have access to similar tools to what we do in real estate. The seller expects that the transaction will be done at a reduced cost. It places pressure on commissions; sellers mistakenly think they could do this on their own.
So, our responsibility in real estate is to ensure that we use tech and that our agents become tech-enabled agents at the right level for the consumer. We can’t provide tech that the consumer can’t consume. We also need to make sure that we’re adding value.
What would you recommend in terms of commissioners being under pressure?
When I say the seller wants the best deal, it isn’t always about paying the cheapest commission. The seller wants the highest price for this property, and everybody wants a smooth-running transaction. The estate agent’s value comes into the fore when there’s a problem. When there’s a problem, both parties need somebody to go to who can mediate for them.
People are mistaken in thinking that it’s so easy; I’ll contribute myself. I don’t need these estate agents until you actually try. The consumer also faces the same challenges that we do in terms of the legislative environment in our trade, which is debilitating.
Legislation has also added considerable costs to our business. Resources have to be employed, and the consumer, the buyer and the seller also have responsibilities in terms of legislation. But they don’t have any experts to assist them in that process.
So, I would say don’t just focus on the commission. Value is not just about offering the cheapest commission. That’s not value. It’s the extra services we’ll provide, the knowledge we’ll impart, and the smooth running of the process—that’s the value real estate can add to the buyer and the seller.
How are the current economic and political influences in SA influencing the market, and will the GNU and the upcoming U.S. elections impact the real estate market?
Jeanne-Maré Oosthuizen: We don’t know how GNU will play out yet. But as South Africans, we’re resilient and look at life as the glass is half full.
We’re starting to see some green shoots coming out. When it comes to the US, it does affect us; our government is looking at the United States. They’re going to see what they will do with their legislature, and they’ll follow suit. In the U.S., they are waiting for elections, so they’re not going to make any changes to the monetary policy right now, which is normal. In any country, before elections, they have a wait-and-see approach.
So, we’re sort of in a wait-and-see situation, which I wish wasn’t the case because I think our economy is ripe now for low interest rates.
While we are certainly affected by international conditions, I think it’s time we stand on our own now. We need the economy to be stimulated, but there is undoubtedly positivity in the market.
How did you navigate power structures early in your career versus later when you had a more formal leadership role?
Amanda Cuba: When I started, observing and listening was imperative for me. In meetings, I would go in with that mindset. I was a sponge. I was open to every single experience and opportunity that I was given.
One important thing is that people observe you. They watch you, even when you think you’re not being observed. This is how you demonstrate who you are—the essence of consistency, the essence of diligence.
The other aspect for me was having a mentor. As I went from one level to the next level and was getting my promotion, my mentor said to me, “The one critical thing when you are in business is you must understand all the players. You must understand who is in the room. What role will they play in your career? Don’t be busy without understanding the chess and the rules of where you are. And play by those rules”.
We bring an aspect of ourselves—that softness, that understanding—and we don’t leave it out. However, you must understand how the boys play. Play with them according to their rules. Don’t fight with them for rules. Don’t give them the way they play. Otherwise, you become excluded.
You want to be in the room. It is imperative not to fight the system. Work with the system. Work with the rules. As you become greater in your leadership, make sure that you create a circle of people to whom you can speak truth and be authentic at all times.
What advice would you have for a woman looking to grow their own business within the company that they work for?
Tracy Manning: You need to focus on income-producing activities and prove your worth. Power comes in many forms—this is what I learned over the years—and the best power to have, to be recognised, is the power of performance and results.
Be a top performer, an expert in your industry. It’s about being recognised and identified as an expert because experts get a voice. Everybody listens to an expert. Especially a top-performing expert.
Secondly, surround yourself with people. You can’t do this on your own—you will never be a top performer on your own. You need a strong team around you. But surround yourself with people who are better at jobs that you don’t enjoy doing than you.
You must push yourself, push the boundaries, and up your game. And you can only do that if you have stronger people than yourself on your team. So, to me, let everybody else get involved in the office politics and drama that’s going on. Just focus on income-producing activities that make you shine, and then everybody in the executive will want to talk to you.
What opportunities do the next generation of female leaders have?
Jeanne-Maré Oosthuizen: Our different management approaches and leadership roles are great for women; we are gentle and tough at the same time. As mothers, we understand how to get the best out of the team.
We understand that instinctively, when can push you when you need to pull back. You know, surround yourself with a team that is more competent than you, as you said, Tracy. I think our roles are there to build and guide, to motivate, and to get them to a point where they start challenging themselves because they’re safe in the environment that they’re working in.
So, there are plenty of opportunities for women in the workplace. But it’s up to you. You know, I would never want to be in a position where I’ve gotten a position because I’m a woman. You know, I’ve been chosen because, you know, it’s fair play. We have to be the best versions of ourselves.
What are your predictions for the next year and ten years?
Amanda Cuba: Younger people are trying to enter the market, not as individuals, but as a pool of investors. We will see more and more of that in the future because it is harder for the younger generation to purchase property. We’ll see more investment for rental purposes.
Tracy Manning: I think prices will increase. Compared to the global economy, South Africa’s prices are still relatively inexpensive.
We’re going to see an increase in prices. Hopefully, we’ll see the appropriate salary increase or even jobs to pay for this increase. But I think people must realise that our prices will be going up.
How will the balance between online platforms and traditional in-person services develop?
Jeanne-Maré Oosthuizen: We’ve got to understand that we’re in a very interesting and challenging market as real estate individuals; on the one hand, we’re dealing with sellers who, on average, are between 57 and 58 years old, and they have a very specific way of communicating. They love interaction, personal interaction. They want to build rapport; they want to build relationships. That’s their way of gaining trust. Data backs this up: the relationship is really important to them.
Our average buyer at this point is 36 years old. They’re millennials, and they will be followed by Gen Z. Now, these generations grew up with technology in their hands. They have no problem doing their own research and cross-referencing facts on the internet. They have similar information to what we have as real estate professionals. However, the difference between them is that they embrace technology and want to do all their research online before reaching out to real estate agents.
That generation doesn’t want to be sold to. They want the information; they want to get to their decision first, and then they will contact you. Don’t expect them to phone you. A telephone is not something that they use to talk, right? They’ll send you a lead via offline or WhatsApp if they want to communicate.
So, our strategy for dealing with sellers versus buyers must differ slightly.
I think the real estate agents who will be at the top of their game are the ones who nail the difference between interacting with sellers and buyers.
I read something interesting this week: technology is an enabler, but it will never take the role of a real estate agent. Let’s understand that. It’s just an enabler. But humans with AI and technology will survive. Humans without it won’t. So, let’s embrace it because it is how our consumers want to interact with us. But there will always be a role for us.
What are the untapped opportunities or areas of growth in the market?
Tracy Manning: The market under a million Rand is relatively untapped, mostly because the interest rates are so high. It’s not that there’s no stock; there’s a lot of stock.
There are also a lot of developers waiting to go out. They’ve got their plans and projects ready, but they’re not breaking ground yet because they don’t have a big enough target market. In that market, it’s cheaper to rent than buy in the market. So everybody’s holding their thumbs for an interest rate drop; even if it’s a quarter percent drop in the interest rate, it changes the sentiment. It changes the buyer’s and the consumer’s confidence, makes people feel good and attracts foreign buyers. They may not buy with many foreign buyers, but this improves the overall sentiment and consumer confidence.
We will move to a situation where we must plan our alliances and partnerships with overseas players. You’ll be getting more referrals from overseas markets.
We also need to increase our revenue stream from other services and products because if our commissions are under pressure, we need to find other sources of revenue.
What are you or your brand doing to promote transformation in South Africa, and does this need to increase?
Jeanne-Maré Oosthuizen: I think we’ve got a great opportunity in South Africa. Toward the end of last year, we partnered with the PPRA in a program that we call Transformation X, TNX for short. We have allowed real estate and business owners to join our brand as franchisees at no cost.
Transformation has to be real. You have to empower people to build a business and give them support and training for a well-recognised brand to establish themselves as business owners. In the process, they employ others and mentor others.
With this TNX programme we’ve started, we dream of getting to 100, 10X franchises.
Transformation can’t be something that lives in a piece of legislation. We, as South Africans, have a 33 % unemployment rate. Every single South African has a moral obligation to reach out and give opportunities for others to uplift themselves.
As real estate professionals, we are perfectly poised to employ people, help them, mentor them, and start and build them into business owners, who can then, in turn, pay it forward by bringing more people together, more of the workforce, into real estate.
The pie is big; there are opportunities for everybody. Just imagine an economy where everybody contributes to it. It would bode well for all of us.
How has the rise in remote working and changing lifestyle preferences impacted the residential real estate market in South Africa?
Amanda Cuba: It stimulated the markets and the demand for the type of homes bought because now people want space to have enough room to work. During COVID, we all learned very quickly that we do not want to be on top of each other every single day.
COVID restrictions also allowed many people to be more flexible. First and foremost, before COVID, many businesses did not embrace technology regarding online meetings. However, that has changed because communication is easier than before, and we’re more efficient.
While we still want human interaction, it’s also affected our agency service; I think it allowed us to think quickly differently about how we interact with our customers. It’s also increased the number of customers we have access to.
What do you think of the current state of the South African market, and what should be done?
Amanda Cuba: The biggest thing for me is that real estate is an accessible area to start getting into. I think the barriers to entry are not expensive. You can come from high school, you can come with a degree. There’s always on-the-job training that happens in this environment from day one.
Another exciting aspect is that as much as BEE is seen as a complication, I think it is a tool that is starting to let everyone reflect on how to hold hands to change and transform the industry.
While we are all relieved that the whole BEE certificate compliance issue has been resolved, it doesn’t mean we can sit back and say nothing will change. Some of our franchises have done big deals with young black entrepreneurs, bringing such vitality into their businesses. It doesn’t mean you’re going to have to partner with someone buying into your business or that you have to take someone on just from a financial point of view. You can find great people who assist in growing your business as well.
Jeanne-Maré Oosthuizen: It depends on where you sit. As an investor, it’s always a good time to buy. Property is a solid investment; it’s always going to grow. The growth rate will change as the supply and demand change in areas; there will always be an opportunity for an investor to create a stable investment in property.
For real estate agents and property practitioners, yes, we are over-regulated. Yes, we have a big onus to perform, but this will always be an exciting industry. It is always going to change; it’s never going to be the same. Every challenge that we get, we change into opportunity.
Stay with a brand that gives you the training, tools, systems and education to stay on top of your game. And have fun, you know? This is a great industry to work in. Enjoy!
Tracy Manning: I think Real Estate is a wonderful business. You have an opportunity to excel. It’s a particularly good industry for women to excel in; the top estate agents are predominantly women. They are treated equally, and they have great opportunities to go on and have their own real estate offices. And so, join us if you aren’t already with us.
