Record sales for PGP in March 2006 a positive indicator for property market

Posted On Tuesday, 09 May 2006 02:00 Published by
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In March 2006, the first month of the new financial year (March 2006 - February 2007), the Pam Golding Property group has set a new benchmark for residential property sales with unprecedented turnover of R1.6 billion
In March 2006, the first month of the new financial year (March 2006 - February 2007), the Pam Golding Property group has set a new benchmark for residential property sales with unprecedented turnover of R1.6 billion - an all time record for the group and over 60 percent higher than the residential sales achieved for the same period last year (March 2005). During this month the group's average selling price of a home was just over R1.1 million.
Dr Andrew Golding, chief executive of the PGP group, says this exceptional performance is underpinned by consumer confidence in investment in solid bricks and mortar, coupled with ongoing sound capital growth in the property market.  "In addition, over the past financial year (March 2005 - February 2006), the group achieved considerable growth and increased market penetration with some 77 offices opened, bringing the group's total number of offices to 263. Our recently launched Empowerment Division already has 11 black-owned offices successfully operating, with a further six scheduled to open in coming months. We are geared for further growth both nationally and internationally and are currently exploring additional opportunities in some 16 countries throughout Africa, particularly in West Africa."
Dr Golding says that predictions of doom and gloom in the property market simply have not materialised, as while prices have firmed to more realistic levels, the market remains stable and given the current economic conditions, the forthcoming trading period should see sustainable sound growth in property values, between 10 and 15 percent on average, depending on location. "Sales for March certainly seem to indicate that buoyant trading conditions will prevail during coming months, and in addition, the positive ripple effect of the emerging market is not to be underestimated," he says. However, he added that the sale of property to foreign buyers had been negatively impacted by speculation concerning possible regulation of such sales, and PGP's March 2006 sales to foreign purchasers were R106 million - less than seven percent of the group's total sales for the month.
During the past financial year, the PGP group achieved total sales of R17 billion, a figure which includes sales transactions concluded by all operations, including Pam Golding Commercial (PGC). PGC performed particularly strongly concluding transactions with a value of R1.15 billion via the group's Leasing and Sales Division, its International Division (being the JV with Athanor Investments), Golding Hotel Investment Consultants (GHIC), Pam Golding Vacation in Property and Giltedge Travel. GHIC experienced an exceptionally busy year in which they successfully facilitated transactions to a capital value of R365 million - a 75 percent increase over the previous year. GHIC also facilitated a new 150 bedroom hotel - the first Marriott Hotel in South Africa. Some of the more significant commercial transactions concluded by PGC include deals of R57.5 million in Gauteng and R42 million in the Western Cape.
During this period (March 2005 - Feb 2006) the average house price achieved by PGP was just over R1 million - significantly higher than the national average, while sales to foreign buyers represented R865 million. Just 10 years ago the group's total sales were R1.4 billion, with an average house price in 1996 of R286 000. Highlights of the past financial year include exceptional sales of residential properties to the value of over R100 million (Noordhoek, Western Cape), R45 million and R32.5 million (Franschhoek, Western Cape), R26 million (Midrand, Gauteng) and R24 million (Paarl, Western Cape). Dr Golding says the group's positive results reflect sound growth across all regions, with the Gauteng region in particular achieving excellent sales, and with considerable expansion of the group in the country's Central or inland provinces.
Dr Golding adds that as the country's leading project marketing specialists, sales at Tamarina Golf Estate & Beach Club in Mauritius - the very first development to be marketed via the new Integrated Resort Scheme (IRS) launched in that country - have been exceptional and currently represent approximately R470 million.  Sales at Eden Island, a US$300 million marina development in the Seychelles, and at VizioN7, described as one of London's most exciting and visionary new developments, are progressing well, while other exciting projects are in the pipeline. "The London residential property market is enjoying renewed interest among South African buyers, further boosted by the increased offshore individual allowance to R2 million," he says.
Dr Golding says during the forthcoming year the group will make a sizeable investment of some R10 million in various IT, marketing and other customer-related initiatives geared to further improve internal efficiencies and provide clients with services and facilities which far exceed expectation.  These will include a redesign and implementation of the PGP website, while clients will also be able to track the progress of their property transaction on line.
Commenting on the year ahead, Dr Golding says the forecast is positive with controlled inflation, stable interest rates, high business and consumer confidence and sound GDP growth, coupled with the forthcoming 2010 Soccer World Cup - which will provide South Africa with hugely increased global exposure. "From a residential property point of view we anticipate a sustainable, buoyant market with an increase in capital value of 10-15 percent and even up to 20 percent in some areas."
For further information contact: Dr Andrew Golding on 021 710 1700.
Issued by Gaye de Villiers
Tel: 021 6837788 or 083 325 1939
On behalf of Pam Golding Properties

Publisher: Pam Golding Properties
Source: Pam Golding Properties

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