Digital property platform ready to launch
● Whatever the current trading conditions, strategically positioned office, retail and industrial properties generally tend to receive a favourable response on auction, said MC du Toit, CEO Auctions & Sales for BidX1 SA, which brings its first multiple auction to the market on April 10.
“We are seeing a notable increase in investors seeking mixed-use properties, a demand trend which has been in evidence for some time, while of late there has also been a recovery in industrial sales,” Du Toit said.
“Well-positioned industrial developments, development land and smaller mini-factories have been selling very well, while warehousing has also been in demand over the past year.
“And despite the recent fuel hikes, there is still some buoyancy in the logistics market, in key hubs, due to the simple fact that there will always be a need for goods to be transferred.”
Du Toit said that in the office sector, AAAgrade leases would always remain sought after among corporations, as the prime location of the property drove high demand.
Vacancies may be found in certain B- and C-grade buildings, a trend exacerbated by people sharing work spaces or working from home.
“However, landlords are making every effort to make rentals more appealing, with renovations and attractive tenant installations.”
Du Toit added that though the retail market was constrained due to downward pressure on consumer spend, established malls still seemed to draw tenants and Sandton City had been fully let for the first time in years.
He said all properties were suitable for auction, whether residential, commercial, retail or industrial, as they brought together all serious and interested buyers in a concerted focus at one time, to compete against one another.
“In this regard, as we do distressed auctions as well as private instructions, we believe we are ideally placed to achieve fair market-related offers for sellers, bearing in mind that offers are unconditional, namely there are no suspensive conditions.
“In the current market there are some good opportunities available across all asset types and also, on the upside, we have definitely seen better yields being achieved lately, and buyers who are prepared to pay for higher-value properties have seen greater yields than others.
“Interest in our first auction is already running high, and it is clear that buyers and sellers have been waiting for this digital platform.
“We began seeing buyers register as soon as we announced that BidX1 is in SA and have already built up a solid database.
“In early March we will launch our catalogue of properties for the auction, including some spectacular properties in the Whale Coast area and an exceptional manor house in Houghton.
“At the other side of the spectrum, we have also received instructions from banks, liquidators and other institutions.”