Estate agents in South Africa's townships are feeling threatened as the big boys in real estate move into their neighbourhoods to tap future property markets.

Pam Golding Properties has unveiled plans to open 24 empowerment franchises around the country including Soweto, KwaMashu in KwaZulu-Natal and Motherwell in Port Elizabeth.

The group is already operating in Khayelitsha in the Western Cape, while an office in Mitchells Plain is set to open its doors in November.

"We are committed to change. We want to be seen as a company that is adding value to the community and not just taking money," said John Herbst, managing director for Pam Golding's empowerment division.

"Commercially it is a market that will move through different phases of the commercial landscape - from emerging to emerged to emerged elite.

"It is a defined strategy. We want to be able to provide a service solution to that major segment of the market place as well. We are ensuring business sustainability," Herbst said this week.

Another real estate company, Jawitz Properties, is planning to set up office in Soweto next year.

But while these companies move in, some smaller estate agencies with a foothold in traditional township areas are feeling vulnerable.

Jeff Mashigo, who has been operating in Soweto for 26 years, said smaller companies would not be able to compete with leading national groups.

"Mashigo Properties doesn't have a R100,000 budget for advertising, for example. These firms use fancy language, but they are really coming here to take over. It is a horrible injustice and shouldn?t be allowed. But what can we do?"

Herschel Jawitz, CEO of Jawitz Properties, said his group wanted to create empowerment opportunities and become a player in the market. "Moving into Soweto is part of a broader empowerment strategy. This is a long-term investment and we had to make sure it would be profitable and sustainable in the long term."

Cecil Halley, CEO of Halley Properties, based in Belhar in the Western Cape, said "white" companies were "moving in on our turf", despite the presence of black estate agents in the townships.

"They still want to shove their franchises down our throats. At the moment we are all battling as sales are slow in all areas. Because of the indoctrination of the past and the history of apartheid, people still feel white estate agents know what they are doing and they have a lot of clout, especially when it comes to advertising budgets, which we don't have."

Nomali Shibase, owner of Durban-based Mali Properties, agreed that black agencies could suffer severe setbacks once the cash-flush national companies moved in.

"Black estate agents will definitely suffer, that is the overall feeling here. They come here with their big offices, their influence and they are able to advertise. When you talk Pam Golding, you are talking millions. While we, who have been previously disadvantaged, struggle to pay the rent and our phone bills," she said.

But Herbst said his company should not be seen as a threat: "We are not there to take away deals or business from existing players.

"What we are rather suggesting is that our model is based on value to the consumer - buyer and seller.

"The whole business environment and the landscape today is driven by consumerism. The purpose of us moving into this space is that consumers are not yet empowered.

"The consumers have not had counsel from experts in property who can provide them with the necessary information to do what's best for them when buying or selling," he said.

Business Times