The black middle class may be propping up the residential property market, yet those raking in the money from the house trade remain almost entirely white, News24 reports.
Much of the more than R10billion that the real estate industry earns yearly in commissions ends up with a few family-owned businesses that have not achieved much in terms of advancing black participation in the market.
After 15 years of democracy there is not even one black-controlled real estate business of consequence in the market.
Residential properties worth about R300bn get traded annually in South Africa by largely white female agents to an increasingly black clientele – even in upmarket suburbs.
Portia Mofikoe, spokesperson for the industry regulator, the Estate Agency Affairs Board (EAAB), said: “It must, in the first instance, be pointed out that the transformation of the profession to reflect the demographics of South Africa is still very much a work in progress.â€
The proportion of black estate agents to white is at a very low 8%. But this is a lot higher than a year ago and has been achieved largely by default.
The tough market conditions have driven thousands of white estate agents out of business.
The EAAB’s books in 2007 reflected 86000 registered estate agents, but the number now stands at below 50000 agents.
The dominant market players say the lack of transformation in real estate is not due to lack of trying.Lew Geffen, chairperson and co-owner of Sotheby’s International Realty South Africa, says: “It’s a harsh business with no guaranteed income. Every day you wake up unemployed and only get to be in business once a deal is finalised.â€
Sotheby’s has 75 franchise principals and only one is owned by an entrepreneur with a previously disadvantaged background. Read full story.