Challenging conditions in the property market have brought out the worst in players who used to be trustworthy, says Norman Raad, chief executive of Broll Auctions and Sales, which is staging its next multi-property auction in Joburg on October 29.
There has been strong interest in three student accommodation blocks in Mitchell Crescent, Durban - the major KZN property catalogued for the auction at the Wanderers Club at noon.
Raad says: “Difficult times have produced inconsistent and often unethical behaviour, such as buyers reneging on offers, sellers not respecting commission agreements and mandates and property-owners trying to renegotiate commission and prices.”
He feels much of the blame can be placed on government policies which have made owning properties a burden.
“Property has always been a safe investment with buyers able to obtain bank finance. Now, with new economic measures from government, coupled with unacceptable hikes in rates, electricity and utilities costs, properties rarely show acceptable profits. Property owners are losing tenants on an unprecedented scale.”
Nevertheless, Raad expects more properties to be sold over the next two months. “It could be that property players have learnt to accept the current situation as new norm.
“Prices are not likely to increase in the short term but some sound opportunities will come on to the market to be snapped up.”
To get more information about auction, including the online bidding, phone 087 700 8289, email [email protected] or visit www.brollauctions.com.