![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/10\/fnb-office-.jpg\")
<\/a><\/figure><\/div>\n\n\n“Perhaps this is related to a ‘low base effect’, many brokers possibly believing that the Office Market can ‘only go higher’ off recently very low levels of sales and perhaps a Q3 increase in actual sales activity rating has buoyed confidence mildly,” FNB Property Strategist John Loos said. <\/p>\n\n\n\n
“However, much of the expected rise in office sales activity in the near term may be merely due to a growing belief that interest rates have packed in the current cycle, with no further rate hiking since the SARB’s May MPC meeting and an expectation that the next move interest rates will be down.” <\/p>\n\n\n\n
Work-from-home drop <\/strong><\/p>\n\n\n\n In addition, according to Loos, the impact of working from home on office space downscaling has dropped in significance, even if it is still there<\/strong>. <\/p>\n\n\n\n Reflecting commentary from several industry reports covering the office sector, the survey showed that factors such as load shedding are denting remote work in the country – even though companies are still downscaling office space.<\/p>\n\n\n\n The troubled state of the economy was actually the most significant concern amongst brokers, even if this concern has also dropped. <\/p>\n\n\n\n 36% of respondents said that “Economic and Political Uncertainty” was the main issue affecting their near-term activity expectations. <\/p>\n\n\n\n In this category, the key drivers were the weak economy (14%) and the need for a reliable supply of water and electricity (11%). <\/p>\n\n\n\n However, 29% of respondents said that “Channing Trading Conditions” will seriously affect near-term sales. <\/p>\n\n\n\n “Here, we again see some influence from both remote works well as load shedding, 11% perceiving companies still downscaling on office space requirements due in large part to greater levels of remote work, while on the other hand, 9% of respondents believed that load shedding was preventing effectivity working from home<\/strong>,” Loos said.<\/p>\n\n\n