Property Auctions on the net

Posted On Monday, 18 July 2005 02:00 Published by eProp Commercial Property News
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KEEN interest is being shown in PropertyAuctions.co.za’s online auction of an office building in Randburg, which gets under way later this month.

 

Property-Housing-ResidentialThere have been more than 3000 visits to the site already.


“It’s the first and only dedicated online property auction platform in SA, allowing for both the disposal and acquisition of commercial and industrial properties,” says MD Frank Reardon.

“In fact,” he says, “it may be one of just a handful of such sites in the world.”


The building on sale is a 4000m² executive office block with road frontage in Pretoria Avenue in Randburg.


Reardon, who is also MD of SA’s online commercial and industrial property portal Eprop, says 14 bidders have regtiesistered so far. The owner has called for an opening bid of R8m, but Reardon expects bidding could be pushed up as high as R10m-R15m.


“Eprop portal technology allows users to find property information from a broad cross-section of industry and media sources on one convenient online location,” Reardon says.


Property Auctions, a spin-off of Eprop, is an online transaction platform suitable for the disposal and acquisition of all types of commercial properties.

Reardon says sellers and bidders register for a small fee to participate in auctions. Participants are given a detailed credit check of both buyers and sellers.

“The aim of the business model is to keep property auctions simple and straightforward,” Reardon says.


“Although it is the first time a commercial building will be sold online in SA, the response has been excellent. Of the 3000 visits to the site since we posted this auction, 700 have indicated a specific interest in the property. So we expect registrations to increase significantly by the time bidding starts on July 25.”


The company was launched after a feasibility study of online auctions. All big players in the property industry were consulted and it was decided that online auctions were an effective way of reaching the market.


“We studied (auction sites) already operating in other countries, especially in the US, then put together our own online plan.

“We have come up with an auction plan that complies with all legislation and which provides an effective online disposal tool for commercial property owners.”


The auction site was launched in June, and the Randburg office block was offered for sale online at the end of last month. In a few weeks’ time more buildings will go on the auction site.


“There has been huge interest in the scheme as it balances buyers’ and sellers’ interests, and we are confident online auctions will take off. It provides a platform in the market for all stakeholders, both buyers and sellers, and has the support of the leading companies in the property industry.”


Reardon says the property auction market is so massive that online auctions can hope for only a small slice of total sales.


“Besides, we don’t really see ourselves as auctioneers, but merely as providing an online opportunity for interested parties to buy or sell properties.

“We serve the technological needs of property owners, brokers and consultants.” Reardon attributes the support PropertyAuctions has received to the new trust people now have in technology-driven solutions, which fell away after the information technology crash in 2001.


“More solid companies such as Google and eBay are indications that the internet foundation is on a sounder footing today, a development that has restored faith in technology.”


The launch of PropertyAuctions coincides with the expansion of the property market following the residential property market boom.

As the commercial property market is just one step up from the residential market, there are many residential property buyers who are graduating to the commercial market, providing a growing pool of buyers.


Bidding is open to all registered bidders. Prospective bidders have until the middle of this month to register.

Bidding will start on July 25 and close on July 28.

Last modified on Thursday, 12 June 2014 18:49

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