Weekend Argus (Saturday Edition)
Bidding brisk at inaugural online property auction
One home attracted 103 bids and achieved R1.2m more than the asking price
ONE OF the residential properties on sale on BidX1’s inaugural online property trading platform in South Africa attracted 103 bids, resulting in fierce competition among bidders and finally achieving R3.19 million, which was R1.2m more than the starting bid.
MC du Toit, chief executive property sales for BidX1 South Africa, says the property had been on the market for some time and the offer achieved by far exceeded any previous offer.
“The response to our first auction, held on April 10, significantly exceeded our expectations. Bidding was brisk and went smoothly from start to finish, with 411 bids placed on 31 properties over only six hours. It was also apparent bidders found our transparent, secure and totally online platform extremely user-friendly, eliminating the need for travel to an actual auction event. We even had a registered German bidder who was online while on a cruise ship.”
He says “compelling proof” of market interest is the fact that in just two months, BidX1’s new website attracted 236 000 visitors.
The property that drew 103 bids was a double-storey, four-bedroom, family home with double garage in Melkbosstrand in the Western Cape, within walking distance of the beach, while several other properties in various locations around the country also exceeded price expectations on the day.
“During the auction we saw bidders across the board buying for both investment and personal use. Interest was spread in various regions around the country.
“It was also encouraging to note substantial interest from property buyers who had never before considered auctions as a property buying opportunity.”
In the Western Cape, other notable properties which were snapped up include a triple-storey, three-bedroom, three-bathroom 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 apart from the ease of bidding online, the online auction process is 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% to 30% below the asking price on properties are not unusual, pricing a property to sell can be complex. The beauty of our property trading platform is that the correct market price is quickly established.
“We are seeing that selling property on auction is proving increasingly popular because it draws together all serious buyers and facilitates an offer on a specific set date, while bidding online is convenient, immediate, transparent and secure. The auction offer is also unconditional, and the seller has the comfort of knowing he or she will receive a secured offer ‘on the day’. Buyers will have completed their due diligence prior to auction day and acquire the property sold on the day ‘as is’.”
The next BidX1 auction is scheduled for July 3.
For more details, see www.bidx1.com and click on South Africa, or go direct to https://bidx1.com/en/countries/ south-africa or email info@za.bidx1. com.