According to Bosch, auction floors across the country have seen healthy trading during early 2010 with investors flooding into auction rooms to acquire numerous commercial properties which have become available.

The commercial property auction which took place at a local Port Elizabeth Hotel on the 12th of February showed that investors are returning to the auction floors seeking fair value properties to bolster their portfolios. The auction, which was Auction Alliance’s first multiple sale of the year, was exceptionally well attended with over 100 bidders flocking to the event. There was intense bidding for several properties resulting in a number of lots being hotly contested. Out of the nine lots, six were sold on the fall of the hammer offering an immediate success rate of 66%.

Comments Bosch, “it was great to see competitive bidding coming back into our multiple auction events. 2009 was a very difficult year for the property sector but we are seeing renewed optimism and excitement.” Bosch further explains, “we have certainly found that auctions have become the preferred way of selling off property with many more sellers opting to go the auction route.’’

A few of the key sales included a block of 20 duplexes in Sydenham which sold for R4,51m, a closed Chevron site in Commercial Road, PE which went under the hammer for R1.32m and another closed Chevron site in Grahamstown which sold for R2.75m. Two Clover sites were also sold, one in Grahamstown for R605k and another in Alexandria for R715k. In Uitenhage, a 9,5 ha industrial site achieved a final sale price of R1.65m.

Those investors who were rather quiet towards the latter part of last year have now returned to the auction room as they realise that now is the time to buy. It is also quite clear that investors prefer properties with existing buildings, especially those with fair value leases, rather than vacant erven earmarked for development.