One of SA's largest and most iconic estate agencies, Pam Golding Properties, is retrenching head office staff and reducing offices after more than 40 years of growth.
The group’s operations have been hit by a rise in online house sales, and the Covid-19 pandemic, which has led to reduced activity in the housing market.
The company started by Pam Golding, an entrepreneur who saw an opportunity to create a formal house selling business and built it into an SA household name.
CEO Andrew Golding said the Covid-19 pandemic had underscored a changing market where online activity was becoming increasingly important.
The group said it was also bracing for significant pressure on the housing market, warning that SA’s GDP could decline as much as 10% in 2020.
Golding said the global pandemic, which has shut down and disrupted economic activities, has brought the real-estate industry to the “brink of collapse”.
“We are in the process of negotiating with several landlords and depending on the final outcome of the negotiations, may close some of our smaller offices. In any event, part of the restructure of our business — in bringing it in line with the realities of the economy and the new more digitised real estate market going forward — involves moving our businesses in the major metros to operate out of several larger hubs,” he said.
Golding said the Atlantic Seaboard business, which incorporates the entire Atlantic Seaboard in Cape Town, will be operating from its Sea Point flagship office. Similarly, Pam Golding Properties’s Cape Town Southern Suburbs businesses will operate out of its main flagship office in Kenilworth.
None of the group’s agents would be affected by the restructure and no subsidiary businesses would close.
“We have every expectation that businesses such as the online property auction business, BidX1 SA, and Eazi Real Estate fixed-fee agency, will flourish in the current market and going forward,” Dr Golding said.
Some work would be done remotely while the Covid-19 pandemic persisted in SA.
“We will be able to operate to a large extent ‘virtually’ while complying with health and safety protocols, as for the unforeseeable future, Covid-19 is going to be with us,” said Golding.
Meanwhile, competing agency Seeff Properties said it would also implement more digital strategies.
“There is no doubt that the challenging road ahead for real estate will mean that businesses will be looking to streamline their operations and cutting costs where they can. This will include adopting greater digitalisation and efficiencies,” said chair Samuel Seeff.
He said that he did not expect a large exit of agents across the industry. Most agents would rather want to stay on and perhaps accept lower earnings for a while until the market picks up steam again.
Estate agents were able to return to work from Monday in terms of the level 3 restrictions of the lockdown, while abiding by health protocols including keeping safe social distances when they show houses.
Excluding agents and international personnel, Pam Golding has about 700 employees. The company says given that consultations with staff is ongoing, it is unclear how many people will be retrenched.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.