SWAKOPMUND: One of the biggest public auctions hosted by the Swakopmund Municipality on Friday generated nearly N.dollars 60 million in revenue when 120 erven were auctioned off.
The auction, held in light of the town’s 120th anniversary celebrations, generated about N.dollars 59,6 million.
Approximately 700 registered purchasers from all over the country showed up for the auction on Friday, according to a media statement availed to Nampa by the office of Swakopmund Chief Executive Officer (CEO) Eckart Demasius on Tuesday.
A team from Aucor Namibia was in charge of the auctioning of the plots, which are located at Extension 15 near the Mile 4 area.
The erven sold during the auction occupy a total of 79 849 square metres, and had an upset price of N.dollars 222 per square metre.
The market price for the erven currently stands at N.dollars 667 per square metre, and sold for an average purchase price of N.dollars 746 per square metre.
The return on the upset price was calculated at 236 per cent, with the average price calculated standing at N.dollars 496 537,50 per erf.
The media statement also indicated that the lowest price paid was N.dollars 420 000 for a 600 square metre erf, while the highest price paid was N.dollars 700 000 for a 990 square metre erf.
The majority of the bidders were from Windhoek, with a total of 55 purchases made by the bidders from the capital.
The second-highest number of erven (43) were sold to Swakopmund residents, while eight erven were purchased by Walvis Bay residents. Individuals from elsewhere in Namibia purchased the remaining 14 erven.
Each bidder had to pay a registration fee of N.dollars 5 000, which was deducted from the amounts offered by bidders for their allocated erven.
In cases where a bidder was unsuccessful, the N.dollars 5 000 deposit was refunded.
Bidders are now required to pay the full purchase price to the municipality on or before Friday, 02 November.
The purchasers have also been informed that the minimum building value should be at least four times the price of the erf, or the average value of improvements on the surrounding erven in the area.
Also, building on the erven may only start once the plot is handed over to the owner with a minimum building time of two years, after which the municipality can charge property tax as if the improvement was erected on the erf.