CBD property values soaring nationwide

Posted On Tuesday, 10 November 2009 02:00 Published by eProp Commercial Property News
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According to one of South Africa’s leading asset sales and services companies, CBS's around the country are booming with unprecedented demand.

Property-Housing-Residential“Despite the downturn, there have been significant transactions in downtown Johannesburg, Pretoria, Durban and Cape Town”, explains Alliance Chief Executive, Rael Levitt.

Auction floors in all major urban areas are showing that investors are flocking to snap up office blocks in downtown areas, many which are now being converted to student accommodation.

The city with the highest inner city demand is Cape Town, and according to the Alliance Group, over R250m worth of property sales have recently been concluded in the city this year.

With demand still pouring in for prime inner city commercial real estate, Alliance Group has announced several record prices for 12 office blocks that have been sold by auction in Cape Town.

At 14 Long Street, Cape Town, an office block was sold for a staggering nett price of R70 million, making it the highest nett auction price achieved for a city building this year.

“Last year we sold a Cape Town city block for R72,4 million which was a South African record at that stage.

This latest sale greatly surpassed the expected result for the sellers and strongly positions both the auction mechanism and Alliance Group as leaders in the sale of CBD real estate’’, says Levitt.  

Alliance Commercial’s Gareth Currie comments on the R70m sale: “Our strategic marketing push and broad resources at Alliance Group ensured that, although the property had an existing vacancy profile of 11%, we still achieved a top price – well above the seller’s expectations.”

Continues Ryan Joffe: “In recent times we have proved that income-generating and fully tenanted properties achieve phenomenal results on our auction floors.

With this property having a noted vacancy factor, it seems evident that properties that have inherent potential - or the age old adage of location, location, location - can also benefit from the auction mechanism and Alliance’s marketing efforts.”

Other recent results achieved by Alliance in the Cape Town CBD include a city block on Strand Street which housed the famous 81-year old Phoenix Hotel which was sold for R35.7 million, ICG House on Strand Street which was knocked down for R36.8 million, President House in Barrack Street which went under the hammer for R13.44 million, 12 Plein Street for R31 million as well as a complex sold in Woodstock for R46 million. 

Last modified on Wednesday, 18 June 2014 14:59

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