In terms of market share, asset inventory and familiarity, the auction industry has been booming and remains one of the preferred methods of sales in several sectors.
“People have continued coming to auctions,” James Dall, joint managing director of High Street Auctions told CNBC Africa.
While many would have assumed that the Auction Alliance scandal would have severely impacted the auction industry, figures continue to grow.
In 2012, Auction Alliance’s CEO and founder Rael Levitt, was charged for allegedly colluding with banks, liquidators and attorneys to ensure that the company received preferential treatment.
Auction Alliance was also reportedly increasing commission fees from 50 to 75 per cent as well as training auctioneers on how to rig auctions.
Dall however believes that the scandal may have slightly impacted the relationship with auction companies, corporations and banks but has had little impact on private clients due to build-up of client loyalty over the years.
“There was an effect from some of the banks and corporates but it didn’t significantly affect our business. People continued coming to auctions, we built up a relationship with customers over the years so they know who they’re dealing with,” he explained.
“We do business one way and that’s the honest way.”
The auction market, which is currently a buyers’ market, remains vibrant with the majority of clients for High Street Auctions being private sellers and corporate companies.
“The market is very busy. Liquidations though are not the bulk of our work, most of our work comes from private sellers and corporates,” said Dall.