Prime located buildings sold in central Durban and Cape Town

Prime located buildings sold in central Durban and Cape Town

In the commercial property market – in today’s challenging economic climate – successfully concluded deals speak louder than any words, says Broll Auctions and Sales CEO Norman Raad.

“In the current market confirmed sales provide the trigger which generates further positive outcomes. Albeit at prices somewhat less than expected, it reinforces reality and creates contagion across buyers, sellers and the entire market.

“This is our experience, emphatically so at our most recent auction which attracted strong interest from buyers, with the bidding process unlocking the true potential of the property values. And the auction platform still provides the fastest solution to monetise properties.

Durban CBD building sold for R100m

“Notable properties sold at the auction include the Absa building in Anton Lembedi Street in the Durban city centre, which sold for just under R100 million. This trophy property was bought by a local investor who is now the proud owner of one of the best realty opportunities in Durban. This acquisition will bring positivity to the Durban CBD, with changes and improvements expected to follow.”

Cape Town building fetches R25m

Another property sold on auction was a prime 2 800sqm building ripe for residential conversion, centrally situated in the Bo-Kaap area in Cape Town, and which fetched R25 million. The new owner plans to upgrade the property and create a trendy and inviting backpacker.

Raad says the sale of these properties underlines the ongoing demand for quality properties in major centres in the country. In addition, the recent auction saw bidding on all land opportunities, however the true market reflection emerged through the process and the prices achieved were considerably less than where the market was a few years ago.

“Besides the worsening market and economic conditions, one of the obvious reasons for the slump in these property prices is the expropriation of land issue, which is having a major negative impact on buyers and market sentiment, as no one really knows what the outcome is going to be. The wait for some clarity and certainty is creating anxiety in an already depressed market. In the interim, trying to evict illegal occupiers from your property is proving to be costly and even more challenging.

“Positively however, if South Africa is your home, then investing in bricks and mortar is the perfect hedge through this difficult and inflationary period. Property has always proven to be a good investment over time, just ensure you have a purpose for the building or land and that it doesn’t remain vacant.”

Adds Raad: “Smart investors know that this is the time when one has the potential to make money, as wealth is and can be made in the most difficult periods. Hopefully, the banks will play their part in providing finance and we will enjoy stable interest rates for the next period.”

For further information contact Bradley Stephens, MD of Broll Auctions and Sales on 087 700 8269 or 082 443 7731 or email bstephens@broll.co.za.

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