Year-end sale prices were ‘exceptional’
BROLL Auctions and Sales’ final sale of last year produced some of the highest values achieved on auction by the company.
At the Joburg sale at the end of November, the landmark Engen service station on the corner of Glenhove and Oxford roads in Rosebank fetched R120 million.
“This exceptional price again showed that the better the property, the higher the interest – and better the price on auction. The old school of thought that auctions are a last resort sales method was strongly squashed by this property, which was competed for by several buyers,” says Norman Raad, Broll chief executive.
Other high prices were achieved by property housing an Audi dealership and Virgin Active gym in Cresta, which fetched R98m, and an Engen service station and showrooms in Mount Edgecombe, Durban, which sold for R55m.
Raad says the prices realised show that it is a fallacy that only cheaper properties are suited for auction. “The interest is in the quality of the asset, not its value. The market still has life but buyers are being cautious.”
Properties consigned to auction are coming from corporates selling non-core assets and listed funds disposing of tail-end assets.
“We believe property will stabilise after the elections with more enthusiasm from investors. Office space is a challenging sector, with industrial and manufacturing also struggling. Outlying retail property remains in demand. Although residential appetite has diminished, the country’s need for housing will keep this sector robust.”
Broll’s next major multi-property sale will be in Joburg on April 25. For further details, contact Bradley Stephens at 082 443 7731 or email bstephens@broll.com or visit www.broll.com.