Jawitz Properties has established itself as one of South Africa’s leading real estate brands. Much of their phenomenal longevity can be attributed to a people-centric approach, which has always been at the core of the business. According to CEO Herschel Jawitz, building a career in residential property sales is about consistency and building relationships. JANE MAYNE found out more.
What has made the Jawitz brand such a successful offering?
The first key factor that comes to mind is exactly that – the family business. Even as we have grown, we have worked hard to maintain the family feel of the business which speaks to values and culture, ensuring that family is an integral part of the business and that everyone in the company feels like they belong. At the same time, we also focus on building a professional leadership team capable of driving the business forward.
Managing 43 branches countrywide must be challenging – how do you juggle everything?
The business has grown up as a sales business but we have widened our services over time to become a full-service residential property company for several reasons. Firstly, it helps to have other revenue streams that complement the sales business. Secondly, it enables us to help our clients find an investment property or secure a tenant and then manage their assets for them. Thirdly, property management provides us with an annuity income stream. This reduces our dependence on the rest of our business, which relies on ‘once-off’ transactions. Getting all areas of the business to work together is always a challenge and requires constant communication both internally and externally.
How does Jawitz facilitate a “wow customer experience” in client interactions?
We have tried to focus on the internal client experience – what we do at Jawitz Properties and the experience we offer our people. If we do not offer our own people a WOW experience, how can we expect them to offer our external clients the same experience? It sounds like a buzzword, but it all comes down to culture!
In July, 2024, you said that the interest rate outlook looks positive for a rate cut later this year – what’s your current prediction?
We have seen the first cut in rates and I think we will see at least three more. The question is how aggressive will the SARB be? Our Reserve Bank has remained consistent in its message about inflation and interest rates, which is not always popular but is important. The last thing you want is an overly aggressive stance from the Reserve Bank that must then be ‘pulled back.’ The challenge in SA is that most inflation drivers, such as fuel prices and administered prices like electricity, are not driven by consumer demand, which makes a high interest rate environment very difficult for consumers.
What’s the state of SA’s current residential market growth comparative to the last few years?
The residential market is impacted by two key factors: interest rates and sentiment. Both have been heading in the wrong direction for the last few years. The combination of high interest rates and negative consumer confidence has meant that both demand and property price growth have stagnated. However, we are starting to see some green shoots this year with what is perceived as a favourable election outcome, the easing of petrol prices, the first cut in interest rates and the fact that the ‘lights have stayed on’. It is hard to be an optimist in the dark. As a result, buyer demand and activity have improved over the last 6 months and sales volumes have increased noticeably.
In the current financial climate, what is your sentiment regarding buying versus renting?
In a high-interest rate environment, affordability, especially for first-time buyers becomes challenging. As such, some potential buyers opt to rent until rates come down and affordability improves.
The South African residential market remains attractive to foreign buyers – what type of property is targeted by foreign investors?
Despite some of the challenges in South Africa that we worry about, foreigners are still buying mostly into the retirement and leisure markets on the coast, especially in the Western Cape. Affordability and climate play a key role in driving this demand.
There’s a lot of talk about the potential Central Bank Digital Currency (CBDC) – what’s your view on this, and how would it impact the property market?
I am not sure what the impact on the residential market would be, but any legitimate currency does potentially widen the ability of investors to purchase property, which is positive.
Any pertinent tips for buyers, sellers, or investors?
I think a key tip for me would be when investing in residential property or selling, you must be all in. By that I mean you must take a long-term view of the market in South Africa when investing to live or to rent out. If you buy and have to sell in the short term, you are going to lose money in the current market. If you are selling, commit to the process. Most sellers are not getting their asking price at the moment, so, if you do get an offer, consider it very carefully.
Any insights learned over years working in the industry?
Building a career in residential property sales is about consistency and building relationships. Many people think that estate agents work from the ‘trunk of their car’ but the great agents in each area have consistently built their reputations and client base over many years. The focus needs to be not only on how much business you do, but how you do business.
Your Ironman achievements are pretty impressive – has that athletic grit and mindset bolstered your work ethic?
Crossing the line to become an ironman teaches you so many lessons about hard work, resilience, coping with adversity and having a plan but, most of all, about self-belief. When I crossed the line for my first Comrades and a few years later, my first Ironman, it lifted the bar on what is possible for me. It is a wonderful feeling.
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