Property: Sa’s Largest Private Property Valuation Company Launched
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South Africa will never suffer an economy-damaging decline in demand for commercial, residential and agricultural property due to its growing population and sound economic and financial safeguards. This is according to Robert Gumede, Guma Group Executive Chairman and Chairman of newly-formed company, Spectrum Valuation Services - the largest private property valuation company in SA. Launched today and 48% owned by ABSA, the national company was created to service the growing local property valuation market and align this sector with global trends.
Guma and Management own 52% of Spectrum Valuation Services and brings its expertise in property valuation through Sechaba Valuations - a company in which ABSA was instrumental in its formation.
According to Gumede, the property valuation sector in South Africa is alarmingly under-serviced and the new company will support the needs of a rising commercial and residential market. “When the new Credit Act was launched last year, coupled with a series of interest rate increases, it had a major impact on our property sectors by initially reducing sales. We believe market confidence is now set to surge again and accurate and fast property valuations will be in huge demand nationally.
“Against the backdrop of a global credit crunch, South Africa is fairing quite well thanks to the introduction of the Credit Act which has not only protected the country enormously, but also strengthened its property market investment potential.”
According to Eric Wright, MD of Spectrum Valuation Services, the property valuation market in South Africa has huge growth potential when compared to global statistics and population to property ratios. “In SA there are currently over nine million registered properties in both the commercial, agricultural and residential sectors, but only approximately 1400 registered valuers to service this market. Of this, only approximately 700 are qualified.”
Commenting on the company’s ownership structure, Wright says that ABSA Bank made a decision to outsource its non-core business of valuation services, while opting to retain major shareholding in Spectrum Valuation Services and provide infrastructure support nationally. “ABSA Bank is committed to the reduction of risk in the property industry and this deal demonstrates its ongoing support for the valuation industry.”
Spectrum Valuation Services has a national footprint and will service its core market of organisations and businesses, while also aiding individuals. Its scope of service includes, among others, valuations for commercial, retail, industrial, agricultural and residential property. “We also offer independent insurance replacement cost valuations and associated consultancy services such as capital gains tax valuations,” says Wright. All of its professionals are registered with the South African Council for the Property Valuers Profession in terms of the Property Valuers Profession Act 2000.
“Property has consistently out-performed other asset groups and remains a stable and lucrative investment vehicle. We believe that the property sector is on an upward trend and our specialised services, offering comprehensive risk management control, will add to the sustainable growth and long-term wealth creation of this industry,” concludes Wright.
Business News Sector Tags: Property|