Appetite for vacant land back on track

Posted On Wednesday, 17 November 2010 02:00 Published by eProp Commercial Property News
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As development sites sell for R16.7M, a recurring question being asked in property circles is whether vacant land is still haunting investors and financial institutions, or has appetite returned?.

Property-Housing-ResidentialWhile the vacant land market remains badly affected, especially in coastal areas, which traditionally were used for building secondary homes or speculative investments, there seems to be movement again.

Proof of this was evident at Auction Alliance’s October auctions, where three residential development sites in Yzerfontein were sold and confirmed to the highest bidder.

Yzerfontein is situated 85km’s from Cape Town and boasts a 16 mile beach with unspoilt views of Cape Town’s iconic Table Mountain.

“People are discerning in this economy while access to finance remains limited,” says Cape Legal Brad Stephens of Auction Alliance.

“What we saw today was evidence that the market is beginning to stabilize and the window of opportunity is closing for astute investors, but they want value”. 

South Africa in general has an underlying real demand for infrastructure and housing, so that supply will ultimately find a taker. Auction Alliance recently circulated a newsletter confirming a 68% confirmation rate for their October auction sales on a national level.

“Investors like this news and are paying more attention to what’s being offered for sale these days” continues Stephens.

Other vacant land sales concluded in October include a 34 571m² beach front site in the Peal Beach area, located on the water’s edge and the closest point to Dassen Island.

Plans have been approved for the development of 18 residential homes, two townhouse developments, a guest lodge and supermarket. The hammer was knocked down at R7.15 million.

Another interesting sale was a site in Buitenkant Street. On offer was a 25 960m² residential development site, primed for the development of 40 residential homes and a large townhouse. Significant capital investment went into the infrastructure of the site, which eventually sold for R6.35 million.

Situated at the corner of Main Road and Buitenkant Street, opposite the Paxton Centre, the third site fetched a price of R3.225 million.

This 59 043m² site has been zoned for the development of 65 residential homes with a large portion of 8000m²  designated for retail or hotel use.

Last modified on Thursday, 12 June 2014 12:49

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