ELECTRONIC BIDDING RAISES THE BAR

Park Village has again raised the bar in the auction sector by introducing an innovative first in the form of electronic bidding via home or office PC for property and vehicle auctions. 

The bespoke system, modelled on UK systems and developed by Park Village, allows buyers to pre-register with a choice of attending either in person or bidding remotely without being on site. 

Pre-registration is carried out on the Park Village website using ‘i-registration.’ Buyers who cannot attend the auction in person can, on the day of the auction, place their ‘i-bids.’ 

This is an easy process when, after logging onto the PVA website, bids can be placed as the bidding progresses from your home or office computer. 

Catalogues are available in the systems’ ‘i-catalogue’, a wireless catalogue which displays on your PC screen, all lots on auction, accompanied by information about each lot. 

The display changes in real time during the course of the auction showing the next lot to be sold and lots that have already been sold and an electronic vending roll, ‘i-vendu’, sends a text message to the successful bidder in real time to confirm that the bid was accepted. 

The display is also projected at the auction itself, allowing bidders on the floor to easily keep track of the action.

Numerous advantages accrue from the system.
There’s no more waiting in lines to register, information is readily to hand both before the auction begins and during the auction process and all the necessary formalities are accommodated on the software platform, including confirmation of the amount payable by the buyer and the necessary tax invoices.

Above all it’s now possible to take part in a PVA vehicle or property auction on line in real time (ie with immediate finality and without lengthy delays in processing), via your PC without actually being on site, thereby ensuring a new level of convenience for bidders.      

A further benefit is that Park Village keeps participants in the system up to date with forthcoming auctions. In addition sellers can now use the system’s ‘i-seller’ facility to receive all documents and view current and historic market related statistics at the click of a button.   The system is nothing less than a quantum leap forward in the South African auction sector.

LATEST INTEREST RATE CUTS WILL ACCELERATE AUCTION VEHICLE SALES

South Africans may be buying more new cars but demand for auction vehicles has never been stronger and as 2011 looms it would seem the patterns of the past year are bound to be repeated, further boosted by the latest cut in interest rates to their lowest level in 20 years.

Meanwhile the range, quality and choice of PVA’s auction vehicles continues to set new standards and Park Village remains right at the forefront of a booming sector of the motor market.

The last vehicle sale of 2010 takes place at the Bank Asset Disposal Centre Prolecon Rd, Prolecon, Johannesburg South, on December 8, commencing at 10.30am. The date for the first sale of the New Year is to be advised.

PVA KEEPS ON TRUCKING   

Park Village wrapped up its 2010 truck and trailer auctions programme with yet another highly successful sale which witnessed a virtual clear out of the entire inventory of trucks and trailers, engineering equipment, agricultural equipment and yellow metal items.

The coming year looks to be just as buoyant for this division with the possibility that prices will harden going forward. Demand is coming from new players in the transport sector as well as small dealers and established companies wishing to update their fleets or increase their inventory.

VINTAGE AIRCRAFT AUCTION

Park Village recently handled an unusual disposal involving a vintage Tiger Moth training aircraft, demonstrating the company’s versatility.

The Tiger Moth was the aircraft of choice for thousands of pilots for decades worldwide.  Many of South Africa’s airmen of the past and of today for that matter received their wings after going solo in this venerable biplane. 

The message is, if it needs to be auctioned, PVA can deal with it.

COMMERCIAL AND INDUSTRIAL PROPERTY OUTLOOK IMPROVES

The outlook for the commercial and industrial property auction market is showing definite signs of improvement.  Conditions in this sector have remained quiet for some while but recent successful sales by Park Village Auctions Property Division indicate that a turning point might have been reached.

The fundamentals in favour of the market remain intact.  Among these is the fact that tax allowances are favourable, there continues to be lack of capacity in municipal planning departments which slows down new approvals, ongoing bottlenecks in infrastructure delivery, rising building costs and problems in obtaining re-zonings, all of which adds up to demand for existing commercial and industrial space going forward.

Recent C&I mandates handled by PVA  included a Springs high street retail opportunity which realised R7,2m, a Brakpan industrial plot and a prime Boksburg commercial property arising from a liquidation offering warehousing, workshops and staff accommodation.

AUCTION RESIDENTIAL PROPERTY DEMAND REMAINS SOUND

Park Village continues to be a major player in the residential property auction ‘space’. Recent mandates in this respect have included four prime undeveloped properties in a highly rated estate in Bassonia, Johannesburg and two luxury double storey mansions in the Atholl/Sandton area, one of South Africa’s premier residential areas. 

The latter were both exceptional neo-classic architect designed homes offering quality fixtures and fittings close to upmarket shopping centres, top schools, leading medical facilities and sports facilities.  The outlook for this market in 2011 is looking positive given the low interest rates, the steady economic recovery, the lack of new building and infrastructure and bottlenecks affecting new development. 

INCREASE YOUR PROPERTY PROFITS VIA THE AUCTION ROUTE

Auctioning of your investment property or primary dwelling offers greater profit in that the buyer pays the commission. This can make a significant difference to the return from a property sale. On a property worth, say, R2-million for instance, the seller pockets an additional R120 000, i.e. the amount that would have to be paid for the estate agent’s sales commission, assuming it is the usual 6%.

There are other advantages to the auction route -- buyers are gathered on site at the same time as opposed to scattered show days, there is excitement generated by the bidding process, the sale is swift and the transaction is secure on the basis of pre-qualified buyers, rather than a chain of buyers and sellers where one or more link may be broken.

HIGH YIELD RESIDENTIAL MANDATE FOR PVA

Park Village recently secured an exceptional mandate for a rare high yield residential investment opportunity, realising R42m for the asset.  The sale involved an income producing residential township in an established area near Sasolburg.  The auction arose from a liquidation of a development company, the properties having originally been established for employees of two nearby power stations. The lot comprised 460 residential dwellings in garden suburb surrounds with 180 tenanted homes generating a substantial annual income. 

AUCTION TIPS

The auction process fascinates and excites, but there are ten golden rules bidders should be aware of to ensure they extract the most value.

1. Know the reputation of the auctioneers you are dealing with
2. Look at the total costs involved (e.g. buyers’ commission)
3. Do your homework on the asset you are interested in, including its service history and source
4. Inspect the asset carefully to ensure its general condition 
5. Check the value of the asset if bought new – in respect of vehicles for instance use the vehicle price ‘bible’, TransUnion, which lists recommended values for the majority of vehicles on South African roads
6. Set a limit to your bid – don’t allow yourself to get carried away by the excitement of the moment
7. Ensure that you have the financial wherewithal to bid with confidence
8. Be clear on why you are bidding for a particular asset   
9. In terms of vehicle auctions, don’t miss out on the car of your dreams if you can’t attend on the day; simply use Park Village’s new electronic  bidding service – see main story above.
10. View the asset before the auction rather than in a rushed fashion on auction day itself to avoid the ‘buyers remorse’

THIS IS OUR LAST NEWSLETTER OF THE YEAR, SO MAY WE TAKE THIS OPPORTUNITY TO WISH YOU AND YOURS HAPPY HOLIDAYS AND SAFE TRAVEL