Property Developer Auctioning Own Penthouse

Barry Levin, well known property developer, is auctioning off his massive (1400m2) penthouse on top of Two Oceans in Mouille Point tomorrow (Friday 22nd July). The reserve price is rumoured to be north of R40 million.

Why is such a property being sold on relatively short notice (I first heard of it 2 weeks ago) via auction?

Estate Agency Owned Auction House In The Works

I've been hearing rumblings that the major SA real estate agencies (Seeff, Pam Golding, Rawson et al) are going to launch a jointly owned auction house to try and get some stock off their books. Currently the majority of real estate auctions are done by Auction Alliance who have agreements with ABSA and FNB to get rid of properties off their books.

Anyone out there with any more info on a possible agency owned auction house?

ABSA Rapid Auction Programme Report Back - 40% Off Asking Price Accepted

Reader TA went to an Auction Alliance/ABSA Rapid Auction Programme auction and sent in this report:

I must admit that I was quite impressed at the style in which these auctions were being held in that the auctioneers and the bank made it known what was the outstanding bond owing on the property. The way I understood it, these were properties that the distressed owners were 'voluntarily' putting up for auction. Needless to say, not a single property on auction, out of 60, recieved bids even close to their outstanding bond value.

I bid on eight properties and was the succesful highest bidder on three. I left the auction thinking that there was no way in hell that such low bids would be accepted.

I was very pleasantly surprised when I recieved confirmation emails from the auctioneers that all my bids were accepted by the sellers. The one property I bid on was a three bedroom/ two bathroom free standing house in the Table View area. It was and still is for sale through agents for R895 000. My bid of R450 000 was accepted. The other was on a two bedroom 67 square meter flat in the CBD which had a outstanding bond of over R1 million. My bid of R475 000 was also successful. On the third property, a two bedroom flat in the South Peninsula, my succesful bid was R390 000 and the oustanding bond was R650 000 (granted just over a year ago).

Even with the auctioneers commission of 11.4% on top of these prices, they are still bargains of note.

I think that ABSA, along with the other big banks, are seeing ever increasing amount of homeowners defaulting on their repayments and panic is starting to move in. Homeowners are being forced to accept these low bids on their property or else the property will be repossessed leading to a drawn out process which the banks are trying to avoid at all costs.

What gets to me is that the majority of these distressed property owners were granted these bonds less than three years ago by the very same lending institution. Now they are being forced to sell at unheard of prices. The banks actions border on criminal to say the least.

Here's a summary of TA's purchases and the discount he got off asking prices:

	Owed on Bond	Successful Bid	Discount off Asking Price
Three bedroom/ two bathroom free standing house in the Table View area	R895 000	R450 000	49.7%
Two bedroom 67 square meter flat in the CBD	Over R1 million (let's say R1 000 000 even)	R475 000	52.4%
Two bedroom flat in the South Peninsula	R650 000	R390 000	40%

Bank Repo Auctions: Prices Plunge

Reader TA writes:

I've been attending quite a few repo residential auctions and thought i'd send you some figures:

San Marina (Marina Da Gama) - 3 Bedroom / 2 bathroom house
Agent selling price: R749 000
Sold at auction: R425 000

San Marina (Marina Da Gama) - 2 Bedroom / 1 bathroom house
Agent selling price: R599 000
Sold at auction: R415 000

Costa Da Gama - 2 bedroom/ 1 Bathroom house
Agent selling price : R529 000
Sold at auction: R340 000

Pinelands - 2 bedroom flat (92 m/sq)
Agent selling price: R799 000
Sold at auction: R514 000

Rondebosch East 2 Bedroom flat (18 months old)
Agent selling price: R585 000
Sold at auction: R300 000

Table View 3 bedroom/ 2 bathroom house
Agent selling price: R795 000
Sold at auction: R 438 000

Durbanville 4 Bedroom / 2 Bathroom
Agent selling price: R2.25 million
Sold at auction: R1.05 million

Pinelands - 8 bedrooms/ 4 bathrooms (400 m/sq house on 900 m/sq plot in pristine condition) sold for R1.4 million - conservative value by Sheriff was R2.7 million ( a little optimistic but never the less)

Agent selling price is the price the property was going for before the house got repo'd. The auction price is the price knocked down by the Sheriff.

Auction Alliance Breaking Records - Auctions Up 70%

Auction Alliance will be auctioning off +-210 properties this month, the first time they've broken 200 ever. This is a 70% jump from last year September when only 120 or so properties were on the block. A significant chunk of the residential properties are part of ABSA's deal with Auction Alliance through the Rapid Auction Program, a scheme helping to prevent ABSA become, as one source states, 'the biggest landlord in the country'.

When The Second Auction Fails...

After two failed auctions perhaps the R3.6 million asking price on this Simon's Town McMansion, which I assume is the reserve price at the auctions, might be a bit high. I remember when ads proclaimed this place as having a 'market value' of R7.5 million and the asking price was R4.5 million. Now it's 'market value' is not even R3.6 million. It's still listed for R3.95 million at the realtor's site.

Simons Town: Same House, Second Auction

If the first auction in March didn't meet the reserve price, then I'm sure auctioning it again in June when the market has deteriorated further will do the trick.