According to a recent report on research commissioned by the Property Sector Charter Council the South African property sector is worth a staggering R4.9 trillion including R780 billion in commercial property.
From an investment point of view and speaking at the launch of Stanlib’s new ETF (Exchange Traded Fund) Stanlib head of ETF’s, Len Jordaan said property had become a distinct and popular asset class with capital and income-generating attributes.
South African listed property extended its strong run last year, with total returns above 30%, helped by the low interest rates and the positive performance of retail and industrial properties.
According to Lance Chalwin-Milton, the joint Managing Director of The High St Auction Co., there has been a remarkable increase in sale and purchase of commercial property through their auction trading platform, “Organisations also need to be able to move into and out of equity positions with greater flexibility and speed which is why the auction platform presents itself as a suitable vehicle. It must be noted however that the auctioneer’s ability to secure quality commercial stock and attract the right profile buyers is key to making this model sustainable. Fortunately, towards the end of 2012, we recorded record sales which was largely attributable to this move in favour of trading commercial property on auction.”
This again seems to be the trend moving into The High St Auction Co. first multi-property auction of the year scheduled for 21 February at the upmarket Summer Place venue.