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Pam Golding reports R21bn in sales

The Times
Pam Golding reports R21bn in sales

Pam Golding Property (PGP) group achieved record sales turnover of 21 billion rand in the financial year ended February, it said.

This includes transactions concluded by all operations, including the residential arm, Pam Golding Properties, and Pam Golding Commercial. This represents total growth in turnover for the group of 13.5% over the previous year, considerably ahead of the market, it said.

Chief executive Dr Andrew Golding said the performance was achieved despite the dampening effect of the National Credit Act which was implemented in June 2007, coupled with rising interest rates, as well as the energy crisis and political uncertainty during the final quarter of the financial year.

"All regions and operations performed well and the group successfully concluded transactions for 26,000 clients.

"While this represents a 9% decrease in units over the previous period, it does however indicate sound growth in market share as the rest of the industry reported decreases ranging from 20-30%.

"During this period the group expanded its office network to 310 offices with 25 new offices launched in southern Africa," said Golding.

The group’s residential sales comprised 18 billion rand, reflecting growth of 9% over the previous financial year. The company’s average house price was 1.4 million rand, up from 1.1 million rand last year.

While a large number of residential sales were in the 1-2 million rand price bracket, the bulk of homes sold were priced between 1 and 6 million rand.

An increasing number of transactions took place in the 20 million rand plus price range, with sales of properties of 35-40 million rand not uncommon, it said.

While sales to overseas buyers represented only 3% of total residential units sold by PGP, these were to purchasers from some 26 countries around the globe, with the bulk of sales to British buyers, followed by those from America, Germany, Holland, Belgium and France.

"This still represents an extremely low level of sales to foreign buyers and it is noteworthy that an increasing number of these are seeking to relocate permanently to South Africa.

"It is interesting to see the increasing demand among American buyers, and following our successful international property exhibitions held in Russia, China and India last year (2007) we are also experiencing growing interest from those countries," Golding said.

Looking ahead, Golding said while the market is clearly in for a challenging year, there is no doubt that even in the medium and certainly the long term, property as an asset class will continue to provide sound investment returns.


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