Property market ‘experiencing historic times’

Posted On Friday, 21 August 2009 02:00 Published by eProp Commercial Property News
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Combination of a decline in prices and drop in interesf rates sees keen bidding for commercial buildings.

Rael LevittAN OFFICE block in Ferndale was the centre of attraction at the Alliance Group property auction in Sandton on Tuesday when keen bidding saw the sale of a number of lots confirmed from the floor.

“We’re experiencing a historic moment in the property market where there has been a decline in prices but also a decline in interest rates,” auctioneer Rael Levitt said. “In previous down cycles, interest rates were high.”

The Ferndale property is a well maintained B-grade office block on Oak Avenue, once a smart residential area of large gardens and spacious homes.

“The building comes with good cash flow potential with a gross income of R2,82m a year,” Levitt said. Bidding opened at R5m, and reached R13m.

The auction opened with a large pre Second World War house in Sunnyside, Pretoria. The house, near the Union Buildings and in the vicinity of embassies, was sold with vacant possession. It secured a hammer price of R3,5m.

In Sunninghill, a free-standing office block at 4 Peltier Drive, offering a gross income of R95000 a year, achieved a bid price of R7m.

Buildings in the central business district of Johannesburg featured prominently. Cash flow opportunities are offered by one lot consisting of three buildings on the corner of Commissioner and Goud streets.

The buildings, with a gross building area of 3542m², have retail and office/residential components. They fetched a hammer price of R2,5m.

Sutherland Building, a five-storey workshop-factory block with basement level on End Street, with a gross building area of 2414m² and a general zoning, received a final bid of R1,75m.

Next door, Paris House, consisting of factories and workshops on two stands in the fashion district, also came under the hammer. The building, with a gross building area of 4333m² and a gross income of R100000 a year, fetched a hammer price of R3,6m.

Yenson’s Building, a retail block on the corner of Pritchard and Polly streets in the urban development zone, was sold for R3,25m.

Another confirmed sale was of a retail shop, with Lubners as tenant, on Main Street, Kenilworth, which sold for R1,35m. It was described as “the bargain of the day”.

A double-storey dwelling with offices and a gross lettable area of 656m

A bid of R900000 was made for office premises on Maree Road, Bramley Park. The property has a special zoning and a gross building area of 638m²

Development land of 5,28ha off Garsfontein Road, Pretoria East, with a residential development potential for 73 units, fetched R2m, and a three-storey warehouse-workshop on a 2535m² stand in Wynberg fetched R3m. The latter has a gross income of R4500 a month.

Two buildings formerly used as a tyre fitment centre on Zeolite Street, Carletonville, received a best bid of R1,75m. The property has an industrial three zoning and a gross building area of 1800m²

In Linden a block of 10 flats with a retail component of 363m², belonging to a deceased estate, attained a knockdown price of R4,50m.

Last modified on Wednesday, 11 June 2014 13:32

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