WHATEVER else Aucor’s multi-property auction achieved on Tuesday, it did provide evidence that the commercial property market is being sustained at current levels.
“It was quite amazing but most of the prices achieved were close or higher to what we had expected,” said James Dall, CEO of Aucor’s property division.
“The market is not shooting up, but neither is there a dip. The correction has already happened and the market is now where it should be.”
Auctioneer Chico da Silva said prices were fair for the properties available but there were one or two disappointments in the residential sector, which Da Silva says is currently a tough market.
There was a slight change to the usual auction procedure at the auction at the Inanda Country Club.
Auctioneer Eddie Winterstein was on holiday in China and Da Silva stood in for him. It was his first property auction.
Women are becoming more active at property auctions. It was a woman bidder who snatched up the flagship property of the auction, Elephant House, from the predominantly male bidders, providing the most exciting bidding of the day.
Elephant House, once the head office of Elephant Trading Company, has been a landmark in Market Street, Johannesburg, for many decades.
Bidding kicked off at R4m and moved up without a pause to R8,9m, the winning bid and the highest price fetched.
A shopping mall and offices in central Edenvale attracted the second-highest price at R6,9m. Situated on the main road, the complex includes a discotheque as a going concern and has a height potential of up to six storeys.
Two consolidated stands of 39,2ha in Pretoria East and 22ha in Benoni fetched R4m and R1,9m respectively.
A complex on Main Street in City & Suburban, consisting of three factories, six shops and 30 flats and rooms, was described as “an exceptional investment opportunity”. It achieved a hammer price of R2,1m, described by Da Silva as “a nice buy”.
Also coming under the hammer was a commercial property in Vulcania belonging to a deceased estate. The building, at 32 Greer Street, Maryvlei, consists of offices and two warehouses, with a lettable area of 1200m². The building fetched R770000.
Bidding was slow for a 6,6ha development property in Nooitgedacht, Lanseria, that includes an accredited shooting club. After a stuttering start, the property was knocked down for R2,9m.
However, bidding was keener for a designer office block in Dover Road, Ferndale, which fetched R2,6m.
Bidders were less forthcoming for a modern industrial complex in Mogwase, North West. The large factory with double-storey offices, workshops and storerooms struggled to reach the hammer price of R900 000.
There was a further pick-up in bidding for a retail centre in Main Road, Randfontein, with Pep Stores as a blue chip tenant.
Other attractions cited were the complex’s high visibility and “excellent passing trade”. The property easily hit the hammer price of R2,3m.
What is described as “an equestrian family home” at 15 Everfair Country Estate, Midrand, on 1ha of land with six stables, fetched a disappointing R1,8m in scattered bidding.
Bidders were more excited about the “luxurious dream home” in Noordheuwel, Krugersdorp, with four bedrooms, three with private balconies, four reception rooms and a gym room. It was knocked down for R2,7m.
Demand was muted for a stand in Valley View, Midrand. Although it is opposite the Blue Valley Golf Estate, a bid of only R405000 was received.
