Properties with good locations in prime nodes attract strong demand, but there is little interest in vacant or marginal real estate, says Auction Alliance.

The group is awaiting the results of its July commercial multiple auctions.

Held one week after the World Cup, they will serve as a good indicator of market sentiment.

“We were naturally concerned about post-World Cup investor appetite,” CEO Rael Levitt said, “and with almost R500m brought to the market, we have been pleased by strong demand for quality investments.”

Mr Levitt felt that there was a “steady improvement” in the market, which was confirmed yesterday at the group’s Cape Town auction, where a 68% success rate was achieved.

“Post-World Cup investor babelaas seems to have been tempered with a strong dose of pre-World Cup anti hangover medication in the form of pre World Cup investor temperance.

“We are, in fact, quite happy that the 2010 party is over and investors seem to be back to business and actively looking for cash-yielding assets.

“Rosebank, like all prime office nodes, definitely seems to be a node investors will pay top prices for, and with the Gautrain launch happening soon, the market seems extremely buoyant.”

A building occupied by fuel giant Chevron was sold for R33m. Office blocks in Durban, Cape Town, Pretoria and Rustenburg attracted strong interest.

“We are simply finding that if a property is vacant, it is extremely difficult to sell.

“If the property attracts income, however, buyers are attracted and realise that property is a great investment, and unlike cash in the bank, will grow yields year after year.”

However, Mr Levitt said the sale also showed “the vital need for correct pricing. We are finding that sellers of certain asset types are getting their values wrong and overinflating their expectations.

“Vacant commercial land is simply a disaster although the company sold several large tracts of land, including a large tract of land in Midrand which was zoned for a hotel and sold for R9,5m.”

The property was from the portfolio of liquidated Queensgate Property Group.