Mirroring a similar trend in the USA, a growing number of young adults in South Africa are choosing real estate broking as a career rather than an occupation by default.
That’s according to Richard Gray, CEO of Harcourts Real Estate SA, after a recent survey within the group revealed that 29% of its agents were under the age of 40, and 12% were less than 30 years old.
This, he says, contrasts significantly with statistics released in September by the Estate Agency Affairs Board (EAAB), which show that the average age of estate agents in South Africa rose from 54 to 58 years old over the period September 2011 to September 2012. This, he notes further, is against a backdrop of an overall increase in agent numbers: the total number of registered agents in the country climbed from 36 000 to 40 000 over the same time period.
Quoting from an article in the Wall Street Journal (October 2012) on the rise of young estate agents in America, Gray says South Africa’s property market is also seeing an increase in young entrants. The reason for this, he believes, is multi-faceted. “Unemployment is a major factor. There just aren’t enough good, well paying jobs for ambitious young adults in the country at the moment.”
“Secondly, the high cost of tertiary education, exacerbated by the economic downturn, is forcing young go-getters to adopt non-degreed careers. Young agents with an entrepreneurial spirit find real estate to be a great opportunity to build their own personal brand and business.”
“Thirdly, real estate brokering is moving into an increasingly technology-driven age, defined by online marketing, content and contact management systems, social networking, website analytics and tracking. This appeals to the techno-savvy ‘X generation’, whose notebooks, tablets, iPads and smart phones are extensions of themselves and the way they communicate and live their lives. Accordingly, they tend to be the agents of preference of buyers and sellers in their age group, since they speak the same language.”
The in-flow of youngsters to the real estate sector is further defined by their choice of agency, says Gray. “They are choosing companies like Harcourts, which operates in 10 countries, because of high-end training programmes, cutting-edge technology, an innovative approach to marketing and an international presence,” he avers.
Gray’s assertion is borne out by Harcourts’ inclusion in Real Estate Business’s inaugural Top 20 Real Estate Groups for 2012. “The group was placed 3rd among Australia’s top 20 top real estate companies as a result of its technological prowess and outstanding training programmes, which the judges considered essential to attracting and retaining young talent,” he says of the findings which not only identify Australia’s best real estate performers but also pick up on the trends that are shaping the industry throughout the world. “The effective use of technology is key to increasing productivity and service delivery, which are vital to the sustainability of any business,” he says.
He adds: “The industry can only survive long-term if it’s able to attract young talent while simultaneously retaining its mature and experienced operators. The youngsters bring energy and new skills to the industry, in return for which they have access to good, solid mentorship programs and the valuable experience of the established agents.”
Concerning the overall rise in agent numbers in South Africa this year, Gray attributes this to a combination of new blood and the return of the older agent to the industry. “These statistics indicate that experienced agents, who left the industry during the recession and accompanying market downturn, are coming back. It’s creating an ideal platform for the exchange of knowledge and fresh ideas, which will benefit buyers and sellers enormously,” says Gray.
