South African would-be home buyers with cash will be spoilt for choice at auctions as the market is over supplied forcing prices down.
On 20 February, a development described as a 'not-to-be missed opportunity buy' is a Kimberly development, which comprises 555 residential stands, a conference centre, commercial node, retirement complex and a nine-golf course. The auction will take place at the Camelot Resort in Kimberley.
According to Leno de Villiers, chief executive officer of Julius Buchinsky Group, they are of the opinion that the property market will remain over supplied for the next 12 to 18 months and a result, prices will be forced down.
“Cash buyers are more than aware of this and they will use their money wisely to secure properties at or below market related prices.”
The property auction market is currently very buoyant, he says.
De Villiers explains that their on-site auction has become a very popular and transparent sales mechanism in the country.
Prospective buyers at auctions can see who they are competing with to purchase a property they’re interested in and if they are genuinely keen on buying the property, they participate in a fair and competitive bidding process, he says.
He says it is important that would-be buyers research as much information on property auctions as possible, taking into account the costs involved and the like.
The success of a property auction sale depends a lot on the reserve price (the minimum the seller will accept).
De Villiers says this means their expectations must be in line with what the market dictates, not what their heart desires or where the market used to be a few years ago.
“We assist sellers by providing free auction valuations and guidance on how reserve prices must be structured.”
He says genuine sellers who heed their recommendations generally get their properties sold 90 percent of the time.
As auctioneers we do not have the luxury of time and a lot of things happen in a very short space of time but once sellers are committed to the auction disposal method, they are almost guaranteed to get their properties sold at or even above the reserve price, he points out.
Asked about finance, he says banks do provide finance to auction buyers, but they recommend that buyers get pre-approved finance before they bid on any property.
The auction house will auction more than 20 residential and commercial properties in the Western Cape and Gauteng region.
On 20 February, a development described as a 'not-to-be missed opportunity buy' is a Kimberly development, which comprises 555 residential stands, a conference centre, commercial node, retirement complex and a nine-hole golf course.
It is situated on the R64, 5km outside of Kimberly and the land was previously owned by De Beers, with the first phase already completed.
This development will be sold as one lot with bids of between R50 million and R100 million expected.
The auction will take place at the Camelot Resort in Kimberley.
At Summer Place in Hyde Park, Johannesburg, High St Auction Co will kick off 2012 with a bang with an array of commercial, industrial and residential properties to be sold.
On 29 February, one property, the Remington Rand House will be auctioned as a liquidation sale.
Mark Kleynhans, director of High St Auction Co, says despite the current apprehension in the general business market regarding the global economy and the looming recession, they believe 2012 is a year of growth in the auction market.
Buyers and sellers are set to realise the benefits of using auctions to effectively buy and sell property in a short sales cycle.
He says trends and a strong finish in the last quarter of 2011 indicate that the auction market is poised for expansion.
Kleynhans says the types of enquiries and the qualified nature of the buyers they deal with confirms that this growth will be realised as the year progresses.
On 29 February, one property, the Remington Rand House will be auctioned as a liquidation sale.
Remington Rand House, a Business 1 zoned 6430 square metre building, is located on the corner of Jeppe and Nugget Streets in the Johannesburg CBD and borders the suburbs of Doornfontein and Joubert Park.
The property is a 16 storey office building currently used for residential accommodation with 140 rooms, with a communal kitchen area on each floor.
It is close to all surrounding main arterial routes, including the N1, M2 and N17 highways and transport hubs such as the ReyaVaya Bus terminal, the Doornfontein Train Station, Park Central and Market Taxi ranks.
He adds that the rental market for residential accommodation in the Johannesburg CBD areas is strong and in demand, making Remington Rand House a valuable asset to any savvy investor looking to currently expand their portfolio. –Denise Mhlanga