Positives in auction industry

Positives in auction industry

The election of President Cyril Ramaphosa is proving to be positive for the South African economy and is likely to translate into significant investment from all quarters, including those who have been waiting for the first signs of renewal of the economy.

This is the opinion of auctioneer Clive Lazarus who says smart investors usually coincide new investments with green shoots or a significant sign that the market is beginning an upward trend.

Following years of downgrades and a stumbling economy, he sees Ramaphosa’s economy-friendly stance as the boost needed to release the purse-strings.

And, he is not alone. The rand tracked almost 1% stronger against the US dollar immediately after the poll results were announced and influential ratings agency, S&P Global Ratings, halted its downward trend regarding the country’s economic outlook.

In fact, it is confident Ramaphoria will contribute towards a better-than-expected growth rate of the economy of 1.6% this year which is higher than National Treasury and the SA Reserve Bank’s own figures of between 1.5 and 1.3% respectively.

Lazarus said: “Many leading businesspeople have also expressed their belief that the economy will pick up pace after favourable election results and this type of information is usually all that is needed to send investors into buy-mode.

“In the property segment particularly, we have suffered a long period of indecision, where potential investors have been fence-sitting and not wanting to commit until they have real sign of an upswing. We’re already seeing positive signs since the elections and believe this will translate into more transactions at our upcoming auctions,” he added.

“This will have a knock-on effect for the auction industry because bullish investors will actively seek new ventures, while those looking to raise capital for future investment will find the fast and effortless nature of auctions best suited to the disposal of assets.

“As a result, we expect more stock will become available shortly and more realistic prices can be expected to be reached as more active investors enter the market. In these times auctions are the fastest and least complicated means of purchasing assets and are usually the first place that people turn to…”

Info

  • Park Village Auctions (PVA) is a leading auctioneer in the property, agricultural, business, equipment and general goods industry.
  • For all auction related information, call Park Village Auctions on 011-789-4375 or visit parkvillageauctions.co.za

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