BidX1 takes property auctions online, boosting SA coverage

Bidders flock to the site, placing hundreds of bids within hours

● One of the residential properties on sale on BidX1’s inaugural online property trading platform in SA attracted 103 bids, resulting in fierce competition among bidders and finally achieving R3.19m — which was R1.2m more than the starting bid.

Further testament to the efficacy of BidX1 as a trading platform is that this property had been on the market for some time and the offer achieved exceeds by far any previous offer.

MC du Toit, CEO of property sales for BidX1 SA, says: “The response to our first auction held on 10 April significantly exceeded our expectations, particularly given that this is a new concept and platform for property trading in SA.

“Bidding was brisk and went smoothly from start to finish, with a total of 411 bids placed on 31 properties over only six hours. It was also apparent that traditional auction bidders prefer our transparent, secure and totally online platform as it is extremely user-friendly and eliminates the need for travel to an actual auction event.

“In fact, we even had a registered German bidder who was online while on holiday on a cruise ship. This is true testament to our concept of ‘everyone’s invited’.

“Notably, and compelling proof of market interest, is the fact that in just two months our new website welcomed 236,000 visitors, who spent on average more than three minutes browsing. This exceeds industry norms by a significant margin.”

The property which drew 103 bids was a double-storey, four-bedroom, family home with double garage in Melkbosstrand in the Western Cape, situated within walking distance of the beach. Several other properties around the country also exceeded price expectations on the day.

“During the auction, while we had plenty of investors, we saw bidders across the board, buying for both investment and personal use,” says Du Toit.

“Interest was also broad spread in various regions around the country. It was also very encouraging to note the substantial interest from property buyers who had never before considered auctions as a property-buying opportunity. This supports our vision to build BidX1 as a respected property trading platform that is accessible to private sellers and not confined only to the domain of distressed sales.”

In the Western Cape, other notable properties that were snapped up include a triple-storey, three-bedroom, threebathroom home in Witsand, overlooking the Breede River, which was acquired for R1.75m.

In Midrand, in Gauteng, an apartment in an appealing complex sold for R980,000.

Du Toit says that apart from the ease of bidding online, the online auction process is extremely attractive to sellers as it creates a competitive environment where the price is determined by buyers competing against one another in a transparent manner, which by its very nature produces a positive outcome on a given day. It is also truly reflective of market value at that particular point in time.

“If the seller has a realistic price expectation in the current market conditions, they will achieve and can even exceed their price expectations — naturally also taking into account the appeal of and demand for the property. In the current market, where offers of 20%-30% below asking price on properties are not unusual, pricing a property to sell can be extremely complex. The beauty of our property trading platform is that the correct market price is quickly established.

“We are definitely seeing that selling property on auction is proving increasingly popular because it draws together all serious buyers and facilitates an offer on a specific date, while bidding online is so much more convenient, immediate, transparent and secure. The auction offer is also unconditional, and the seller has the comfort of knowing that he or she will receive a secured offer ‘on the day’. Buyers will have completed their due diligence prior to the auction day and so acquire the property sold on the day ‘as is’.”

Dr Andrew Golding, chief executive of the Pam Golding Property group and BidX1 SA JV partner, says: “We are delighted by this first foray into the auction market with a globally innovative property trading platform. There is no doubt that our clients will benefit significantly from this additional sales channel, resulting in an authentic representation of market value on the day of the auction itself, and which serves as further added value to our exclusive mandate offering.”

The next BidX1 auction is scheduled for July 3.