Porsche South Africa - Highest bidder of Kyalami

The Kyalami Racetrack has been sold for R205million to Porsche South Africa, who intend to preserve the property as a racetrack.

Yesterday saw South Africa’s first racetrack auction with the highest value received for High Street Auction Co, according to Joff Van Reenen, the lead auctioneer. The auction was held at Summer Place in Johannesburg.

Seven bidders were registered for the property, depositing a refundable R4million for participation in the auction.

As well as the racetrack being retained, the name will also remain to be Kyalami Racetrack. Van Reenen has also claimed to be pleased with the purchase price.

600 to 800 participants were anticipated for the auction.

Sandton development

In just four years, Sandton is scheduled to see the opening of Discovery’s latest 87,000 square metre head office.

The head office is to be developed by Growthpoint Properties and Zenprop, in a joint venture which has been called the largest single commercial office development of Africa.

55% of the building will be owned by Growthpoint, as the remaining 45% will be owned by Zenprop.

Growthpoint’s CEO, Norbert Sasse explains that this is systematically four/five years’ worth of property acquisition – A longer term project than it may seem.

The head office will be situated at the corner of Katherine Street and Rivonia Road, a region which has become a commercial development centre during recent years.

Kyalami track under auction

Kyalami racetrack, host to Formula One Grand Prix races for almost twenty years, is to be sold and may be given to motorsport, according to auction organisers today. 

A minimum price of 200million rand ($19million) has been set for the celebrated circuit upon 72 hectares of land within a rapidly developing region, North of Johannesburg, as claimed by a representative of the High Street Auction Company. 

It is said if a developer is to purchase the track, the nature of the Kyalami property would be expected to vary quite considerably, with the possibility of there no longer being a track. 

However, some potential buyers were looking at the possibility of keeping the track whilst developing its surroundings. 

More residential building plans passed, contribute to ZA leading index increase

South African Reserve Bank figures have today revealed that South Africa's leading index moderately increased during May, after remaining stable the month before.

The leading index, measuring perceptions of economic conditions in the future, increased by 0.1 points to 99.6 during May, from 99.5 the month before.

Four out of 11 components increased during May, as six decreased and one remained unchanged.

May’s slight improvement owed to a drive during the twelve month percentage change in job advertisement space, plus a rise in the number of residential building plans passed.

The leading index declined by 1.2% yearly during May, following a 1.5% decrease during April.

The coincident index, measures present economic activity, which increased by 0.9% to 118.3 during April from 117.3, the month before.

Meanwhile, the lagging index, measuring previous economic conditions, rose by 104.3 during April from 102.2 in March.

Interest in Western Cape Residential Market

Estate agent, Pam Golding Properties have found that many South Africans still aspire to reside in ‘cosmopolitan’ Cape Town. This is as well as foreign buyers who are attracted to the favourable rand exchange rate.

The FNB Western Cape housing price index has reported that the average price for a house in the region has risen by 12.5% during the second quarter year-on-year.

An FNB survey of estate agents also found that the period for a house of the Western Cape to sell has decreased from an average of 13.7 weeks to 13.3 weeks.

Agents estimate that 81% of sellers are currently being requested to decrease their asking price, in comparison to 95% early last year.

The managing director of Pam Golding in Cape Town, believes the residential property market throughout South Africa is receiving intense interest. The market is enjoying what seems to be a continuing upturn, defying the economic constrictions said to be experienced by other sectors.

The areas within and surrounding the Western Cape, specifically the Cape Town metropolis, provide an intriguing sample of the whole country's housing market, resulting in the region often being considered as a national property barometer.

Despite the growth rate of Western Cape's property sales, FNB analysts claim it is second to Gauteng as the most affordable residential market.

The most expensive property ever on the South African market

The most expensive property to ever come on the South African market has been valued for over US$35million.

Described as ‘The Great Gatsby-esque’, it is situated in Camps Bay, Cape Town, known as ‘Enigma Mansion’. It is home to seven bedrooms and bathrooms, Persian carpets in every room, a luxury Olympic sized swimming pool, an elevator, as well as a six car garage.

The property is also characterised with over US$5million worth of imported handmade door handles, hinges, chandeliers and lamps. Additionally, the wallpaper is said to be velvety, which was imported into the property as it was hand printed at Zuber, Paris. It also offers sea views.

Randburg Rising

Randburg, which lessened some of its charm on the back of Sandton’s popularity over recent years, is now poised for the return of developers and investors.

Consisting of over 32 suburbs, with the majority being upper-income residential suburbs, the area had begun to wane. A JHL leasing consultant explained that there was a migration of industrial and retail investors toward Northern suburbs, such as Cresta and Sandton.

However, with municipal plans to renew and upgrade infrastructure, JHL forecasts Randburg to attract new investors as well as former investors. It is now a designated a priority area and significant commercial point of the City of Johannesburg’s five-year Integrated Development Plan.

Therefore, Randburg as well as other suburbs, will benefit from developments in road infrastructure and public transport of the Rea Vaya Bus Rapid Transit system (BRT) expansion. It is aimed to provide easy access to Johannesburg suburbs via the Rea Vaya BRT system, which the City of Johannesburg are calling the ‘corridors of freedom’.

Foreign buyers purchase within developing regions of South Africa

Nigerians have been ranked amongst some of the top foreign buyers of choice properties throughout different parts of South Africa, who are particularly focusing on developing areas rather than the major regions of Cape Town, Durban, Johannesburg and Pretoria.

For example, Nigerians alongside other foreign buyers purchased around 670 properties worth approximately R800million in Kwazulu Natal and 260 properties worth approximately R23million in the Eastern Cape. It has been revealed that there is a growing trend amongst the said foreign buyers towards purchasing properties in South Africa as an investment, rather than for personal use.

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