| 2010 soccer accommodation: a damp squib? |
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| Written by Adin Walls |
| Monday, 22 June 2009 09:08 |
22 June 2009 About 55 000 fans have nowhere to stay. Samuel Seeff sizes up the fresh opportunities that have opened for property owners.  More than 55 000 soccer fans are yet to book accommodation for the 2010 Soccer World Cup and Seeff Properties and football icon Gary Bailey have joined forces in an innovative joint venture that will see South African property owners score by letting their homes to alleviate the crisis."As we count down to the most historic event this country is likely to see since the inauguration of Nelson Mandela, we realised that the fact that 55 000 fans still have nowhere to stay presented a business opportunity worth an estimated R400 million for the property market," said Seeff Properties Chairman Samuel Seeff. He said few realised the extent of the growing accommodation crisis. "For the first time, FIFA has had to sign up non-graded accommodation for its officials because of the shortfall of accommodation in South Africa. MATCH, which accommodates VIP's, sponsors and the media, is 20 000 beds short for the 30 day period." Bailey said this was without taking into consideration the needs of the ordinary fan. According to SA Tourism, there will be a shortfall of around 65 000 beds in Gauteng on peak nights and also shortfalls in smaller cities such as Port Elizabeth (15 000 beds), Polokwane (5 000), Rustenberg (5 000), Bloemfontein (14 000) and Nelspruit (13 000). The good news for the property sector, which has up until now been left reeling by the ongoing financial meltdown, is that it could scoop up as much as half of the estimated R1 billion that is expected to be spent on accommodation across the country. Bailey said this was no exaggeration as South Africa could expect between 250 000 and 400 000 visitors - at least ten times the number during the Rugby World Cup! "In terms of value, if we take 65 000 beds in Gauteng and assume that fans will be here for a minimum of one week, we get to 455 000 bed nights. At R1000 per night, that's R455 million that will be spent in Gauteng alone!" In terms of this joint venture, Bailey will, through his own network channels, refer all requests for non-graded residential accommodation to Seeff Properties. Homeowners wishing to let their properties can contact the Seeff offices in their areas or visit www.seeff.com. Seeff will help determine a fair rate, and then market the property to visitors. Seeff said homes close to stadiums in good condition were most likely to be snapped up early by fans. Because educational institutions were closed during the event, those with homes in prime positions could consider moving out or even taking a holiday and letting their properties during the event. "The actual amount you would receive varies from property to property. However, we believe that you could charge a minimum of double the monthly rental that you would ordinarily receive. So, if your house could rent today for R20 000 per month, we reckon you could get a minimum R 40 000 (or R10 000 per week) - and that that would still be cheap for visitors who pay a lot more for accommodation in their own countries!" said Seeff. Even at this early stage, Seeff has signed up a number of properties and has let many - including one in Cape Town for R13 000 per day! At Featherbrooke Estate in Krugersdorp, Seeff has already secured more than 50 sole mandates from residents wishing to let their properties out for 2010, making this potentially one of the premier 2010 accommodation destinations. 60 homeowners in Athlone have also signed up to let out their homes. .. and this is just the beginning, Seeff pointed out. Bailey, however, cautioned that there was significant risk for both home owners and visitors when letting out properties - making a joint venture such as theirs all the more crucial. "I had been concerned for some time about the number of websites offering accommodation, where there is no middle party (like an estate agent) to ensure that both parties benefit and that valuable assets are protected! With Seeff, for both landlords and visitors, there is no second chance here - there is only one SA Soccer World Cup and it's imperative that everything works, that both parties' interests are protected, that the visitor has the experience we all want to create, and that the owner gets the maximum benefits from the letting of their properties with the least amount of hassle and potential problems. Seeff has a national infrastructure and over 45 years of experience, to ensure this. "I'm very comfortable with Seeff's management and structure throughout the county and impressed by the committee they have set up to make this a great and highly successful World Cup. Seeff has a long and proud history of service. But what is particularly impressive is that they are the only South African member of the prestigious UK Guild of Professional Estate Agents. Foreign visitors, who have never visited here before, will obviously have concerns. Being a member of the Guild means that Seeff subscribes to its code of conduct and that, if a foreign visitor is dissatisfied in any way, he has recourse through the Guild in London." Seeff said this venture had drawn a favourable response from organisers. "We have approached people within the LOC and MATCH and also checked with lawyers protecting FIFA's rights. Everyone is comfortable and has encouraged what we are doing. They understand the problem we are trying to address and appreciate the efforts we are making." "We are huge supporters of making this the best World Cup ever and, besides the obvious business opportunity, we felt we could both contribute by supporting FIFA and the LOC," Bailey and Seeff concluded. http://www.realestateweb.co.za |