The year 1976 is a historic period in South Africa and that of the birth of arguably one of South Africa’s leading agencies Pam Golding Properties.
Pam Golding Properties is selling a six bedroom home with luxuries including a home theatre room and wine cellar for R11.5 million in Mossel Bay. The location is said to be sought-after by high income earners who are prepared to buy properties priced from R6 million to R18 million.
Pam Golding, the founder of Pam Golding Properties (PGP) identified the need for a discreet, professional agency to assist sophisticated and high-profile buyers with their property requirements.
From humble beginnings
As the group celebrates its 35 years of existence, group chief executive officer Dr Andrew Golding says the key to the group’s success has been the adherence to a set of founding values including integrity, honesty, and professionalism.
A passion for property and service ethic that acknowledges the importance of exceptional customer service as the key to repeat business and sustainable success, have all contributed to building the brand that is PGP.
“The ability to attract and retain talented staff and estate agents is one driver of our success.”
PGP group is now recognised locally and internationally as Southern Africa’s leading independent real estate agency employing more than 2 500 staff and estate agents worldwide.
With footprints across the country, PGP also operates in countries including Argentina, Australia, Botswana, France, Mauritius, Mozambique, Namibia, Seychelles, Swaziland, United Kingdom, USA, Zambia, Zimbabwe and UK Commercial Investments.
The group was the first South African real estate company to market local properties abroad in 1986, forming an alliance with one of the world’s largest property group, Savills PLC.
Golding explains that in the past 35 years, PGP has hopefully made a difference to the buying and selling process of homes and contributed to the real estate industry.
From an international perspective, he hopes PGP remains a recognised brand ambassador for South Africa promoting the country internationally.
“By attracting foreigners to buy property, we have assisted with foreign direct investment and job creation.”
He says the group has created significant employment opportunities and this year alone, within the estate agent and staff force, the business provides for a family of 10 000 people.
Asked what challenges face the group resulting from operating in many countries, he says one of the primary challenges is ensuring that the company’s culture and ethos can be exported across borders.
This is dependent on finding the right partner internationally and with the same set of values and objectives, that’s half the battle won, he says.
“One needs to pick a market where one can create a competitive differentiation”
For the group, this means an ability to provide a range of comprehensive property services and hopefully add value to the property industry in that particular country.
In Pam Golding’s story as published in South Africa’s Greatest Entrepreneurs, the group has always valued the importance of advertising and marketing its properties, something it continues to do today.
Golding says advertising and marketing has always been a cornerstone of the group’s founding philosophy and a passion for marketing and pursuit of marketing excellence are constant aims and objectives.
“We have been fortunate over the years to have exceptional creative thinkers and marketers heading up marketing strategies and implementations starting with Pam herself.”
He says thanks to the digital technology, the group has created a separate division to continue to utilise marketing as a differentiator in the industry.
In 1976, PPG’s first property sale was Laundry Cottage in Wynberg for R42 000. The highest property sold by the group to date is De Goede Hoop Estate in Noordhoek for R150 million, says Golding.
Golding’s take on the property market
The property market is slow with steady improvement over the past three years or so off the back of a fairly calamitous decrease in the volume of sales (in some cases as much as 50 percent of the volumes that were there disappeared over night), he says.
Dr Andrew Golding, group chief executive officer of Pam Golding Properties says the market has slowly but surely improved and is now back to some sort of normality driven by sustainable market drivers and by the traditional four D’s – death, divorce, departure and destitution.
To an extent, he says this was exacerbated by the global economic recession and in particular, the South African banking approach towards lending.
Since then, the market has slowly but surely improved and is now back to some sort of normality driven by sustainable market drivers and by the traditional four D’s – death, divorce, departure and destitution
“Given the fact that the market sees itself in a historically low interest rate environment and where distressed debt is slowly improving, there is every reason to be optimistic about the property market.”
He says internationally, apart from certain pockets of exceptional growth for example, prime central London, the international markets are suffering from the post-recession blues characterised by lack of finance and house price deflation.
He points out that there is a sense that in most international markets, the worst is over and these markets will slowly tend towards steady improvement.
Asked on what first-time buyers should be looking out for when deciding to purchase property, he says it is almost impossible to get the time to buy exactly right.
“Certainly the current market conditions, low interest rates are favourable for buyers.”
He advises first-time buyers to try and follow the old adage of location, location and location, which is to purchase the best possible property from a location perspective in the area and price range they can afford.
First-time buyers should compare market analysis and use trusted advisors in the purchase of the property.
Bitten by the property bug
Golding (48) went to school at St Andrews College in Grahamstown and went on to complete a BSc at Stellenbosch University followed by a MB. CHB Degree at the University of Cape Town with an Honours Degree in Sports Medicine.
He entered private practice as a General Practitioner on the Atlantic Seaboard, practicing from 1991 to 1996 and joined PGP as managing director in 1996 followed by his present position as group chief executive officer.
Asked how he got into property from being a doctor, he says when his brother Peter, who was at that stage running the residential division decided to open up a PGP commercial division, he joined the group.
He says this was part of the succession planning process of Pam as founder (and mother) to run the residential division and ultimately, the group.
“I thoroughly enjoyed my time in general practise and still have significant interest in matters relating to medical and sports medicine in particular.”
However, he says he has equally loved the 16 years of his involvement in the property industry and PGP group, saying there is never a dull moment in his job.
Golding is internationally known for his global networking and ambassadorial role in promoting South Africa.
He is the ex-president of FIABCI (International Real Estate Federation), a board member of ooba and currently president of the Institute of Estate Agents of South Africa.
Golding is responsible for introducing new innovative marketing initiatives focused on overseas markets, including the highly successful Euro Invest tour of England, Ireland, Holland and Germany and other European counties that bring high nett worth investors to South Africa.
In 2007 this tour was expanded to include Russia, Dubai, India and China.
At home in South Africa, he is a member of the Institute of Directors, the Young Presidents Organisation and the South African Medical Health Profession.
Golding is married to Tanya, an architect in private practice and they have two sons and a daughter.
When he is not talking property, he loves a good game of golf, music and Iron Man triathlons.
He describes his management style as inclusive as this is important in developing a sense of team and teamwork synergies.
With an organisation as big as the PGP group, it is imperative that communication flows seamlessly among staff and that a strong sense of community is fostered always, he says.
PGP’s future plans
Having been around since 1976, the business has encountered a number of challenges as the property cycle has waxed and waned.
Graaff-Reinet voted South Africa’s Town of the Year in recognition of its huge popularity attracts buyers drawn by the town’s historic homes, scenic homes and wide open spaces. This property situated in Cypress Grove in Graaff-Reinet is selling for R990 000 through Pam Golding Properties
He explains that in a close encounter during one severe down property cycle in the early days of PGP’s existence, the business was able to learn the harsh reality of being in a sales environment where at the beginning of every month all the meters go back to zero and one starts again.
“A healthy respect was developed for the extent to which the market can drop and an acknowledgement of the need to save for rainy days.”
On what’s in store for PGP, he says they are optimistic and excited about 2012 and that the property market will improve further.
He says the group is confident in growing its market share further this year and have introduced a number of measures which he believes will have a significant and long-lasting effect from a competitive point of view.
These are aimed at recognising the changing needs of consumers in the buying and selling process.
“Our ultimate goal is to further entrench our credentials as the country’s preeminent residential real estate property group.”
The group as many South African companies, is bullish about expanding its range of services into the property industry and in expanding its operations internationally particularly on the African continent.
He adds that the group is in the process of opening offices in Nairobi, Kenya, Angola and West Africa. – Denise Mhlanga
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