Bargain-hunters vs hopeful sellers

Auctions - A significant number of deals had yet to be closed following a big Cape Town property auction hours after the bidding.

About 30 buyers were registered for the Alliance Group multiple auction of 19 properties on Wednesday, though an estimated 200 people gathered to attend proceedings.

A Cape Town newspaper reported on Thursday that most of the properties sold for 25% less than sellers wanted and four properties had to be set aside as there were no starting bids.

One Hout Bay property of three erven fetched just over R2m, well below the R7m the sellers paid for it a few years ago, while a mixed-use site in Ottery did not attract any bids, said the Cape Times.

Among the offers heard at the action: Heritage House in Burg St went for just over R8m, a Clifton plot with approved plans for 12 apartments fetched R9m, two Green Point buildings fetched R26m and R28m, and a shop in Mitchells Plain R200 0000.

All the bids were subject to approval by the sellers, said the report.

Christian Stewart of the Alliance Group told Realestateweb.co.za after the auction that the auctioneers were still trying to close a significant portion of the deals, but that this was standard after an auction.

"We broker deals pre-auction, sell some at auction and broker post-auction," he said.

He said none of the properties on offer were liquidation matters.

"There is no question things have tightened," said Stewart of the general market conditions.

Article from: www.sapropertyinvestor.co.za