South African would-be home buyers are actively looking and placing their bids at auction houses in search of good value for money residential properties countrywide.

Buyers and investors turned out in great numbers at the recent auctioning of 49 sectional title units in the Ruimsig area of Roodeport in Gauteng.

Auctioneers are reporting an influx and purchasing appetite from buyers and investors from all walks of life.

Buyers and investors turned out in great numbers at the recent auctioning of 49 sectional title units in Ruimsig area of Roodeport in Gauteng.

Park Village Auctions’ Michelle Liebenberg says the units are mostly two bedrooms and one bathroom in various estates located close to Monash University.

Currently, most of the units are rented and she expects demand to come partly from the existing tenants. She says the price bids were better than expected and compared with normal retail prices, they were genuine bargains.

“It’s evident that the lock-up-and-go sectional title market is alive and well provided the properties in question are in good condition, are well positioned and are attractively priced.”

She explains that to a large extent the results of the sale contradict market commentators who maintain that the property sector is in the doldrums.

“Clearly the long established ‘hot buttons’ of price, position and condition all came into play in terms of the sale.

“Buying one of the units at the kind of auction prices works out less expensive in terms of monthly bond repayments than rentals,” she says.

The sale of the units arose from the liquidation of trusts. The prices ranged roughly from the R400 000 to R500 000 mark.

“Demand for well priced auction property is still strong, in contrast to most of the rest of the market which remains soft for now.”

In the Western Cape, bank repossessed properties are providing bidders at auctions with some of the best priced property ever to become available in the province.

According to Tanya Jovanovski, franchisee for Rawson Auctions in the Western Cape, there was a prediction at one stage that the flow of this type of reclaimed property would soon dry up, but as yet, we see no signs of that happening.

A vacant 735 square metre plot on Lake Michelle in the secure ecological estate, The Lakes at Noordhoek, is expected to attract initial bids of R450 000

“On average, I estimate that such properties are being sold at 35 percent below the price they could have achieved before the 2008/2009 recession set in.”

Next month, three upmarket properties will hit the auction floor in Newlands and interested buyers and investors are expected to put down a 5 percent deposit on the fall of the hammer.

Jovanovski says the increasing house shortage have ensured that there has never been a better time to buy into South African property than now. 

“The current downturn, although long-lasting and likely to run for at least another 24 months, will inevitably be followed by an upturn.” 

She says people who build up a property portfolio now are assured of significant capital gain by 2015/2016.  Those who miss out on the current good buy opportunities will live to regret it – and it has to be said that the opportunities that come via auctions are almost invariably the best of all. 

A vacant 735 square metre plot on Lake Michelle in the secure ecological estate, The Lakes at Noordhoek, is expected to attract initial bids of R450 000.

The Mitchells Plain property located at 42 Yorkshire Crescent in Weltrevreden Valley, is on a 260 square metre erf and has three bedrooms. Opening bids are expected to be R400 000. 

A 598 square metre plot in Pepperwood Estate, Somerset West is the last of the plots available for sale in this area. Bids are expected to start from R650 000. The average home in this estate sells for between R2.1 million and R2.4 million. 

This four bedroom home in Plumstead will be sold on auction later this month. Bidding is expected to start at R3 million. This property is ideally positioned for conversion into business premises.

In another auction later this month, a four bedroom home on 847 square metres at 41 Constantia Road in Plumstead will be sold at the fall of the hammer. 

Jovanovski describes this property as ideally positioned for conversion into business premises. It is conveniently located next to the Shell garage close to the junction of Constantia and Gabriel Roads. 

She says the home is surrounded by other houses that have already successfully applied for business right rezoning and are flourishing in their new roles because the site has so much passing traffic.

“Opportunities to buy property in this prime trade area are very limited.” 

The premises were purchased in 2010 for R3.3 million and bids are expected to start from R3 million. – Denise Mhlanga 

Readers' Comments Have a comment about this article?   Email us now.