10 June 2013|
Buyer demand for London properties pushed revenues to £9.8m at Andrews & Robertson’s 4th June auction held at the Grand Connaught Rooms, WC2, reflecting a 74% success rate.
While the price of residential property averaged at £183,365 across the catalogue, the average cost of a vacant residential property located within the M25 was £204,000.
A total of 73 lots were offered for sale. Interest in residential investment attracted a busy room and competitive bidding on stock, resulting in the successful sale of 52 properties. Demand for lots within the M25 was especially high and 24 out of 28 offered (86%) sold.
Our June catalogue included instructions from vendors including: The London Boroughs of Lambeth, Richmond and Southwark, major housing associations including Affinity Sutton, property companies including Granger Plc, Mountview Estates Plc, The Court of Protection, Treasury Solicitor, LPA Receivers, Executors, and Public and Private vendors. The fresh-to-market virgin stock offered on their behalf with development or regeneration potential proved especially sought after.
The growing popularity of auctions is attracting overseas bidders from the Middle and Far East as well as Russia and Europe to our room as well as UK-based buyers who now see property investment as providing a much better rate of return than is currently achievable on bank deposits.
The evidence lies in the yields achieved on investment stock under the hammer: AST yields on tenanted residential property at June’s auction reached 10.2% compared to 7.7% in April, while those on and regulated tenancy yields were 5.6% against 4.6% in April. Although the demand for secondary commercial property remains more subdued, realistically priced stock that is in tune with buyer’s expectations, is selling.
Robin Cripp, auctioneer, said: “There is huge appetite for property and we are achieving very good prices at auction. Buyers perceive it is a straightforward and speedy method of sale and they value its transparency. The greatest challenge facing our sector at the present time is the reluctance of banks and receivers to let go of the stock they are holding, what they are waiting for I cannot imagine, since the prices being achieved now especially within the M25, are often well above their peak of 2007.”
Auction highlights included:
• 19 Riverside Road, Egham, TW20: This freehold boatyard, in the same family ownership for more than 50 years had potential (subject to consents) for a number of alternative uses including residential development. Guide Price:£1,200,000/Sold for £1.3m.
• 12-14 Grange Mills, Weir Road, Balham, SW12: This office / industrial building let at £33,000 pa to a limited company had just five years unexpired on the lease. The building had long term redevelopment potential triggering competitive bidding. Guide Price £310,000 plus/Sold for £400,000, an initial yield of 8.25%.
• 211 Milkwood Road, Herne Hill, SE24: A leasehold house with just three years until lease expiry. Priced to sell with a guide of £40,000 plus/Sold for £195,000.
• 40 Herne Hill Road, Herne Hill, SE24 : A large self-contained house split into a flat and four bedsits sold by order of the executors. Guide price £435,000plus/Sold for £584,000.
• 2-4 Crowther Road, South Norwood SE25: Two houses converted into a children’s nursery with reconversion /development potential. Offered on behalf of the LPA receivers with vacant possession. Guide price £400,000 plus/Sold for £451,000
andrew scott robertson’s next auction will be held on 23 July at the Hotel Russell, Russell Square, London, WC1 for which we are now accepting instructions.
If you are considering selling a residential or commercial property then our dedicated auction team would be delighted to discuss the best strategy for you with no obligation. For further information or for an appraisal of your property’s suitability for auction please contact: John Weatherall or Dominic Smith on 020 7703 4401 and Jeremy Lamb on 020 7808 8530.
If you require professional guidance or support in letting your commercial or residential property or managing it to its full potential post auction then as-r are here to help you from start to finish. Click on our newly re-designed website outlining our full range of services: www.a-r.co.uk for a full overview of our enhanced service offering.Our dedicated commercial and residential agency includes a professional property management team offering RIC red-book valuations, pension fund assessments, rent review advice, lease renewal negotiation and dispute resolutions. Our letting team can help to servicing your investment to produce the very best in rental returns from sourcing high calibre tenants, as well as collecting and updating rents.