KNIGHT FRANK SA
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KNIGHT FRANK SA
Cape-Ability Benchmark PRODUCTION: Colin Chinery
With Cape Town a top international property hotspot, globally-integrated agency and consultancy Knight Frank South Africa is uniquely positioned. “Speak to investors and they are very happy to spend money - especially here in Cape Town,� says new CEO Richard Hardie. www.enterprise-africa.net / 3
INDUSTRY FOCUS: PROPERTY
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Cape Town has some of the world’s most expensive homes and is often grouped with global leaders such as Shanghai and Vancouver. Breathtaking scenery, enviable climate, lifestyle, and superior infrastructure, the ‘Mother City’ has it all - cosmopolitan magnet for foreign buyers and affluent Jo’burg families. House prices here have climbed nearly 80% in the past five years. And in city’s four most desirable neighbourhoods on the Atlantic Seaboard - Clifton, Camps Bay, Bantry
Richard Hardie - CEO
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Bay and Fresnaye – almost 20% in the first quarter of this year. While the market outside the Seaboard has softened in recent months, the property industry here and in South Africa generally, is now at a pivotal moment, says Richard Hardie, the new CEO of Knight Frank South Africa, Residential. CAPE GETS THE LIMELIGHT “Cape Town has become a real international destination, featuring in the world’s media, and value for money from a global perspective. Our
strengthened political situation has also helped with investor confidence.” Cape Town and Western Cape are the heartlands of this real estate operation, formed initially in 1983 by Anne Porter as Anne Porter Properties. In 2004 the company entered into association with Knight Frank, the Londonheadquarted global property agency and consultancy, and five years ago rebranded as Knight Frank South Africa, with Anne Porter as board chairman. From its headquarters in
KNIGHT FRANK SA
// WHEN I ARRIVED HERE TWO YEARS AGO THE BRAND WAS REALLY NOT WELL KNOWN AT ALL, BUT SINCE THEN WE HAVE SEEN A HUGE UPTAKE // Claremont, Cape Town, Knight Frank SA specialises in the sale and rental of residential properties, apartments, farms, guest houses, self-catering and luxury holiday accommodation in the city, suburbs, and Western Cape. Its paternity is impressive. Founded in 1896, Knight Frank has grown to become the world’s leading privately-owned global property agency and consultancy, with more than 15,000 property professionals in more than 418 offices in 60 countries, including nine in the rest of Africa. Hardie values this strong international factor, bringing together a global network of offices and promoting a brand known for exceptional levels of service. “The way we run the day-today local business here is entirely up to ourselves, but obviously you have to follow corporate branding and global marketing strategies. I want Knight Frank SA to be fully connected into the international network, and we have already made strong headway.
market moving.” After working in the property sector in central London and the Channel island of Guernsey – including a period as Managing Director and celebrity buying agent for Phil Spencer, of ‘Location, Location, Location’ TV fame - Hardie returned to his native South Africa in 2016 to head up Knight Frank South Africa’s Atlantic Seaboard, Hout Bay and Cape Town City Bowl operation. In May this year the 39-yearold was appointed CEO, leading a new management team alongside newly-appointed Chief Operations Officer Nick Gaertner. Hardie reports a subsequent and decisive gear shift.
“We are in a period of change, a young management team is coming through, and it’s more dynamic. There’s more energy, efficiency, and communication at every level of service we provide. We are all singing from the same hymn sheet, and it is working. “And we still have Anne Porter as our chairman, who has an unbelievable wealth of knowledge. Nobody knows more about the South African industry than she does. “So we have this amazing pool of knowledge, skills and experience. And as far as the umbrella goes, we are effectively a British company, part of the Knight Frank brand, with ideas coming from the London head office.
ON THE MAP “When I arrived here two years ago the brand was really not well known at all, but since then we have seen a huge uptake. Knight Frank South Africa is now very much on the map.” Supported by authoritative market research and a close understanding of the country’s residential property markets, Knight Frank assists domestic and international clients in all aspects of buying, investing, and selling and owning of residential property in South Africa. “While we are currently experiencing a softening of the Cape Town market, I regard this as an opportunity to shine, and be seen as the agency that keeps the
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INDUSTRY FOCUS: PROPERTY
// I’M A HUGE BELIEVER IN COMMUNICATION, TEAM WORK, BRAND AWARENESS AND CUSTOMER SERVICE // NEW MINDSET “We are bringing mindsets from a different country, and not completely set in the South African way of doing things. With all this backing behind us, I think to a certain degree we are a different company to work with and for, compared with purely local companies.” While Knight Frank is known as a
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luxury brand, it is important to have a strategy which covers all aspects of the market, says Hardie. “That said, we prefer to go for quality over quantity. “But you have to be realistic. This isn’t central London; at the end of the day it’s Africa. Also, we are not an established business but a growing one, so we have to be far more open with our strategy. However, I have done this before in a previous business where we were known for dealing with the higher-end of the market, yet we diversified to include a broader spectrum of the market.” But every client can expect the same standard of attention irrespective of price. “We tell people that their property is often their
biggest investment, and it doesn’t matter whether it is two and a half million rand, R25 million or R250 million; we want to treat you the same. But as I say, we are looking for quality over quantity more than anything else.” Hardie is looking for growth, chiefly through increased digitalisation and an expanded network of agencies. “There are still areas where we need agents such as the City Bowl in Cape Town where there is huge amount of development is going on.” “We are increasing the number of agents and attracting more, focussing very much on core areas such as the Atlantic Seaboard, Hout Bay, Southern Suburbs & City Bowl.
KNIGHT FRANK SA
// SPEAK TO INVESTORS AND THEY ARE VERY HAPPY TO SPEND MONEY - ESPECIALLY HERE IN CAPE TOWN // on every street corner’ concept redundant, Hardie stresses the unique advantages of personal contact. “There is still very much a need for agents and the personal interaction element they bring, and we are always looking to enhance that user journey and make sure it’s as easy and interesting as possible.”
// AND WE STILL HAVE ANNE PORTER AS OUR CHAIRMAN… NOBODY KNOWS MORE ABOUT THE SOUTH AFRICAN INDUSTRY THAN SHE DOES // “We are also currently setting up a development department for South Africa - a very exciting next step for us - and it has started with a bang and already developing a snowball effect.” While online viewing and Ipad accessibility have made the ‘office
BRAND PRIDE For those who fit the Knight Frank SA profiles, Hardie offers a brand to be proud of. “I’m a huge believer in communication, team work, brand awareness and customer service. Respecting and understanding the people who work for you, and looking after them, is incredibly important to me. “Wherever I have been I have always had an incredibly good retention rate.” Engage the right people at the outset, get the right mix, and create the environment they want to work in and enjoy, and you will retain your staff. “There are a lot of companies out there who are in the numbers game, purely interested in bums on seats. We are not; we are very much about people. We want people to be proud of the brand they work for.” Foreign ownership in South Africa has experienced an upsurge – up 42% in January this year compared with the same period in 2017 - with Cape Town unsurprisingly at the front, with just over seven per cent of current total sales made by foreign buyers. Perception can be critical, and early this year, overseas momentum took a hit as dams ran dry amid one of the worst droughts in the Western Cape in living memory. Cape Town came within weeks
of Day Zero - the moment when taps would be turned off and emergency water rations imposed. As recently as May, some experts were even discussing towing an iceberg from Antarctica to Cape Town to help alleviate the stress on water supplies. While agents remain upbeat about the demand for the city’s prime housing market, rising fortunes are contingent on developing a longterm solution to its water problems. GREEN SHOOTS With dam levels 20% higher than at the end of last winter, Hardie believes the market will turn. “If we have the predicted rainfall for the rest of winter, this will have a positive effect, and I think we should start seeing green shoots again towards the end of this year and into the first quarter of 2019.” There’s a further encouragement for the green shoots – the Ramaphosa Effect. “There’s been an absolute turn around in people’s confidence, and we think this is an ongoing factor. People definitely feel much more positive about investing here. Speak to investors and they are very happy to spend money - especially here in Cape Town.”
WWW.KNIGHTFRANK.CO.ZA
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