In South Africa, the property sector is holding its own in a less than favourable economic environment, proving that property is a sound investment that rides out the economic highs and lows relatively smoothly, according to High Street Auctions joint managing director, James Dall.
In Johannesburg, a deceased estate home with views of Northcliff and three bedrooms will be auctioned on 15 August at Summer Place in Hyde Park.
Dall says while consumers are feeling the fuel and electricity hikes and the subsequent rising cost of living, property remains a long-term investment that continues to grow.
“With the stricter bank regulations making it more difficult to qualify for a bond, it is also a great time to buy to rent,” he says.
On 15 August at 12pm at Summer Place in Hyde Park, High Street Auctions will hold a multiple auction offering residential and commercial property in Johannesburg, KwaZulu-Natal and Cape Town.
Some notable properties include Osizweni Shopping Centre in Kwa-Zulu Natal.
Located in one of the largest townships in the province with over 80 000 residents, it consists of two developed buildings with 18 retail shops and currently generates over R2 million per annum.
The property has rights to expand and develop a third building, adding greater earning potential.
Located on High Level Road, Green Point in Cape Town, is a three bedroom apartment, fully-furnished also to be sold at the fall of the hammer.
It is close to Table Bay, Signal Hill, Sea Point, V&A Waterfront, the city centre and key tourist attractions.
On the outskirts of the Johannesburg CBD is a residential and retail property in Bertrams. It is in good condition, well managed and maintained with five retail shops, street frontage and 18 double bedrooms en suite.
It includes adjacent land on Millbourn Road, currently zoned Residential 4.
Located in Simbiti Eco Estate in Ballito, KwaZulu-Natal, two luxury apartments will be auctioned.
These are ideal as a residence, holiday home or investment to generate income from rent.
Each apartment offers secure, quality living, with good facilities, excellent finishes and impressive views, according to the auctioneers.
In Gauteng, The Spar Centre on Central Avenue, Eastleigh, Edenvale will be auctioned as part of the corporate disposal.
Located on High Level Road, Green Point in Cape Town is a three bedroom apartment, fully-furnished also to be sold at the fall of the hammer on 15 August.
The property is a multi-tenanted retail strip with six shops and anchor tenant, SPAR.
In Johannesburg, a deceased estate home with views of Northcliff and three bedrooms will be auctioned.
According to joint managing director Lance Chalwin-Milton these days very few people have the appetite to take big risks on a property in the hopes it will pay off – everyone is looking for a good deal.
“Having a nose for a good investment requires patience and proper research in order to find the hidden gems.”
He says the auction platform is perfect for serious investors as it allows interested parties an opportunity to assess the area trends and realistic current value of the property on sale prior to the auction.
Armed with this information they can then decide what their bid limit is in order to ensure they make a good investment, he explains.
Meanwhile, Rob Whiteley, Rawson Auctions franchise principal for Gauteng says the general public has the idea that the vast majority of properties coming up for auction are due to the fact that the owner has run into financial difficulties.
Whiteley says this is far from being the case, and points out that many properties are auctioned because sellers want them sold within a fixed time period and the reasons for this can be varied.
The owner may, for example, want to buy another property and need the cash from the first property by means of a quick sale, or in a deceased estate, the owner’s heirs may want to get hold of their share as fast as possible.
Another reason could be that the owner may be relocating and wants the sale to be finalised before he moves. Auctioning is, therefore, ideal for any seller with time constraints, he explains.
In the commercial sector, Whiteley says many sellers never use conventional sales techniques but rely solely on auctions to achieve market related prices.
Located on the corners of Kruis and Anderson streets, this property covers two erven and occupies nearly an entire block in the Marshalltown district which is characterised by various large commercial and high-rise buildings including the famous Carlton Centre and infamous Carlton Hotel.
The reason is that it is now increasingly possible to achieve a price, by auction, that is close to the seller’s original target figure.
“We recently, for example, auctioned off a two bedroom sectional title unit at 93 percent of the asking price and we were also able to sell an ultra-luxurious, Great Gatsby-style penthouse in the heart of Sandton for R11.4 million.”
The success rate of auctions has also led to their increasing popularity.
He says Rawson Auctions Gauteng is achieving a 63 percent clearance rate (successful confirmed sales by the seller) and 46 percent of those not confirmed at auction are sold in a post-auction process within about two weeks because the publicity generated has created a marked sense of urgency about the sale of that property.
“Certain sellers shy off auctions because they fear they will be made to accept a low price.
“This fear is groundless because it is common practice to set a reserve price which the seller can either accept or refuse.”
In view of the increased demand for auctions in the marketplace, Whiteley is predicting a 40 percent upswing in turnover for this by the end of this year.
Rawson Auctions Western Cape will auction a luxury home on 21 August at 12pm at 222 Main Road, Rondebosch in Cape Town.
Tanya Jovanovski, co-franchisee for Rawson Auctions in the Western Cape, says the property is one of the most attractive homes ever built in Sunridge, Milnerton.
Bidding for this home is likely to start at around R2 million.
It has no less than six bedrooms, all en suite, panel heating in all rooms, Norwegian pine ceilings, two separate kitchens, a built-in oven and hob, double sink, laundry, formal lounge, dining room and study.
“For some time now, Milnerton home prices have moved ahead of the national trend and whoever buys this home will, I believe, benefit from this fact,” she says.
Aucor Property will hold its multiple property auction on 14 August at the Hyatt Regency Hotel in Rosebank, Johannesburg at 12pm.
Rawson Auctions Western Cape will auction a luxury home in Sunridge, Milnerton on 21 August at 12pm at 222 Main Road, Rondebosch in Cape Town.
Sean Parsons, business development executive, says the properties include commercial, retail and residential and of note is a parcel of properties west of Johannesburg in the Newlands area.
These properties are all located on Main Road, which is a major thoroughfare through the suburb.
Main Road becomes Ontdekkers Road as it approaches the N1 Western bypass, linking Johannesburg to Roodepoort.
They include a Retail Centre, Corner 8th Street and Main Road in Newlands, zoned for Business 1 and has additional land at the rear of the stand.
105 Main Road, Cnr 13th Street in Newlands is a double storey building zoned for business 1.
Covering 3 erven, the property has a land extent of 992 square metres and a GLA of 717 square metres.
Another is Car Lot, 117 Main Road, Cnr Oosthuizen Street in Newlands measures 2 504 square metres and is zoned for Business 1.
A parcel of properties west of Johannesburg in the Newlands area all located on Main Road, which is a major thoroughfare through the suburb, will be auctioned on 14 August at the Park Hyatt Regency Hotel in Rosebank, Johannesburg.
It is used as a car sales lot featuring a yard which can accommodate up to 150 cars, a modern showroom, ample office space, reception area, store rooms and ablution facilities, two workshop sheds and staff accommodation on site.
Parsons says all three properties in Newlands offer would-be buyers looking to get into the small to medium business market a solid investment in a well-established suburb.
One of the properties headlining the auction event is a landmark building and parking garage in Marshalltown in the Johannesburg CBD.
Located on the corners of Kruis and Anderson streets, this property covers two erven and occupies nearly an entire block in the Marshalltown district, which is characterised by various large commercial and high-rise buildings including the famous Carlton Centre and infamous Carlton Hotel.
The area is easily accessed both through the city centre and the M1/M2 highways via the Mooi Street and Eloff Street off ramps.
“Since 2005 there has been significant redevelopment of the Johannesburg City Centre with dedicated resources being allocated to the gentrification of the area.”
He says crime has rapidly decreased as a result of the installation of CCTV cameras and numerous old high-rise buildings have been redeveloped into upmarket condo’s bringing a much needed residential component back to the CBD.
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