Properties fail to attract interest

IT WAS a tough auction for the Aucor multiple commercial property sale in Rosebank on Wednesday and a number of lots were passed over for lack of demand, but good properties in well-established and sought-after areas did well.

There was strong bidding for lots in Melrose and Waverley, but properties in the leisure market are feeling the pinch of economic conditions and are not fetching high prices, said Aucor’s Mark Kleynhans.

“Demand is weak as financially things are beginning to bite and one can pick up phenomenal value in the leisure market as many owners are trying to offload their assets to meet current financial obligations.

“An illustration of this trend was the attractive residential stand within Sabie Park, which received no bids,” said Mr Kleynhans.

An office block at 23 Van Wyk Street, Roodepoort received a preauction bid of R2.5m, which pre- empted further bidding. The building with six floors of offices and 12 small retail outlets has a gross building area of 1,882m² on an 282m² erf. The building zoned for business one has residential conversion potential.

No bidders registered for a commercial building on Loots Avenue, Croydon and was passed over. The building, offered with vacant occupation, has a gross lettable area of 1,060m² and has a billboard on site.

Bidding picked up for properties in Waverley and Melrose North. Two residential units in SS Via Siena at 80 Scott Street, Waverley fetched a combined price of R1.21m, which auctioneer Darren Winterstein described as “good value”.

A 52m² one-bedroom garden unit fetched R585,000 and a 58m² one- bedroom garden unit was knocked down for R625,000. When offered as a combined lot no offer higher than the combined price was received and the individual bids remained.

Four units in Via Veneto on Atholl Oaklands Road, Melrose North fetched a combined price of R4.38m. The units consisted of a 112m² two- bedroom loft (R1.28m); an 80m² twobedroom garden unit (R1.25m); a 112m² two-bedroom loft (R1.2m) and a 53m² one-bedroom ground unit (R785,000). No bid higher than the combined price was received for the whole portfolio and the individual bids remained.

“It shows strong demand for properties in established good areas, and many buyers are investing in these properties for the high rentals they command. The market for good rental units is good as an increasing number of people are forced to rent as banks are still tight on credit,” Mr Kleynhans said.

Vacant land was not in demand. No bids were received for a 72,495m² vacant stand with business and special zonings on the corner of the R55 and Lochner Road Centurion and was passed over.

Vacant land at Hammanskraal fared slightly better. Only one bid of R200,000 was received, which Mr Winterstein described as the “bargain of the year”. The lot was offered subject to no land claims being made on the property.

“There is little interest in vacant ground and the price is indicative of the risk factor attached to such purchases,” Mr Kleynhans said.

A single storey office with a storing area on 29th Street, Malvern was sold prior to the auction.

The building is on a 495m² erf and has a residential four zoning.

Bidders showed no interest in the Dogone building on Anderson Street, Ferreirasdorp, where 40 units (30m² to 80m²), including Darkie Cafe and Conference Centre were on offer. There were no registered buyers.

A 39m² one-bedroom unit in Dogon, Ashanti and Anderson Streets Ferreirastown failed to attract a bidder at the auction.

A modern 141m² duplex in The Newtown complex, 35 Quinn Street, was knocked down for a hammer price of R450,000, which Mr Winterstein said “was for nothing”.

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