KEEPING YOUR FINGER ON THE PULSE OF THE PROPERTY MARKET

Message from the CEO

LEADING THE INDUSTRY

Jonathan Russell Smiedt

Chief Executive Officer

At a time in our country where we all have to tighten our belts in the wake of economic downgrades by two rating agencies, attracting foreign investment is crucial.

It is therefore refreshing to hear that in the Western Cape investor confidence has grown over the last five years, and Cape Town is the second biggest contributor to the National GDP according to the latest State of the Central City Report by the Central City Improvement District (CCID).

In the real estate market we have heard various negative predictions from time to time but at ClareMart we remain realistically optimistic as instructions received from private sellers, institutions, funds and the legal fraternity have doubled in the last three months.

Our Group has been mandated to sell in the last 10 days over R 200 million Rand in movable assets and fixed property nationwide, including two exclusive properties in one of the most sought after areas on the Atlantic Seaboard.

It is a fact that more and more Sellers of commercial and residential property are choosing the auction floor over traditional real estate channels as we minimize the delays in achieving a positive result for sellers. The Estate Agent has, by all accounts, not been able to match the fast pace and marketing target methods that establish finality with the auction process. Their procedures have simply not been fine-tuned over the years, to the quick pace of an auction.

ClareMart also remains a preferred service provider to most of the banks and legal fraternity who are more comfortable with an arm’s length and transparent process that our auction’s strict compliance requirements provide, and my Group prides itself on the adherence to these codes.

Our footprint in the public sector continues to grow, and we have a week ago taken another fine selection of development land to auction on behalf of the City of Cape Town attended by over 150 auction investors.

We have facilitated successful contract auctions for various municipalities throughout the Western Cape over the past few months and are regularly receiving enquiries from other local and provincial governments across South Africa.

The buy-to-rent market remains highly lucrative as economically active millennials are choosing to stay in the rental market for much longer, even prepared to pay a premium rate to stay in areas in which they may not yet be able to afford to purchase.

On Friday 5 May and on the instructions of a Liquidator we take to a liquidation auction a magnificent seven-unit residential block on the False Bay Coast that could be a great opportunity for the buy-to-rent investor.

On-site auctions are becoming increasingly popular, particularly when the property has the ability to really indulge the senses of the investor, by offering an experience of the ambience and aesthetics. A superb five-bedroomed Durbanville family home with guest house potential and a luxurious five-bedroomed Tuscan Villa in Sunset Beach are amongst the platinum on-site auctions we are facilitating on 10 and 11 May respectively.

Our next multiple auction on 24 May, promises to be packed with a variety of platinum residential and commercial properties to suit various investment needs.

We look forward to continue to provide our clients and colleagues, with a top of the line service throughout South Africa.

See you on the auction floor.

Jonathan Russell Smiedt
Chief Executive Officer