Auctions first choice in wake of recession
ECONOMISTS are predicting the end to the global recession, with international data confir ming that economies are showing signs of growth.
Britain, the last of the G7 nations to remain in recession, is finally showing a turn with experts in accord that the latest GDP data will show the economy grew 0.4 percent from October to December.
This bodes well for the South African market and the renewed buoyancy heralds a new era of growth, says Jonathan Smiedt, chief executive of ClareMart Auction Group.
“This is excellent news for all, but especially for South Africa, which expects an influx of UK and European tourists for the World Cup. After surviving the longest recession ever recorded, many will want to celebrate and improved market sentiment will mean less h e s i t a n cy t o s p e n d d u r i n g their South African visit,” said Smiedt.
Proof that the South African property market was out of recession was evident in the increased activity and gradual increase in prices in the sector.
“ Residential pri c e s have been on the increase, and we have successfully sold proper- ties across the spectrum in the last couple of months,” said Smiedt. Auctions are also now an accepted mechanism within South Africa, and buyers and sellers alike are showing less scepticism than a couple of years ago.
“For many, an auction is now the first choice when it comes to disposing of immovable property,” said Smiedt.
“This recession has proved t h e a u c t i o n me c h a n i s m t o many and we are receiving instruction from trusts, financial institutions, funds, consortiums, governments and government departments, as well as individuals, daily.
Auctions deliver results and in today’s climate results are all that matter,” said Smiedt.
Following their first Multiple Commercial Auction for 2010, Smiedt’s optimism for a recovery in the residential sector is supported by the attendance of their Flash Residential Auction. “January is traditionally a slower month in the property sector, but we saw a healthy attendance and competitive bidding at our residential auction,” said Smiedt.
His optimism is not limited to the property sector.
Findings of the Pricewater- house Coopers 1 3 t h Annual Global CEO Survey, conducted between September and November last year in 52 countries, including SA, shows that an overwhelming 93 percent of South African CEOs are positive the country will emerge from the recession this year.
“Just over a year ago, when the residential market was in the doldrums, we predicted an upturn in the latter part of 2009 and recovery in 2010,” said Smiedt. “This was seen by sceptics as talking the market ‘up’, but the indicators show all the gradual recovery we anticipated. We remain optimistic for recovery in the property sector.”
‘After surviving the recession, improved market sentiment will mean less hesitancy to spend’