25 July 2013|
Investors packed into Andrews & Robertson’s July 23 auction held at the Hotel Russell, London WC1, pushing prices on vacant London properties well above guides.
Among them was the largest lot of the auction: 37 Addington Square, Camberwell, SE5. Offered on behalf of a housing association with a guide price of £850,000 the house sparked competition from the opening bid of £825,000 finally selling for £1,13m.
The vacant Grade II listed five storey Georgian house is located in a conservation area overlooking a traffic-free Regency garden square, that was once a notorious gangster haunt and home to the infamous Richardson gang rivals of the Krays.
There was a notable uplift in demand for keenly priced secondary commercial properties too: a freehold office investment in Sidcup producing £34,404 pa guided at £360,000 plus was sold for £390,000. Bidders sourced vacant residential lots within the M25 sending success rates to 92% on such stock with prices averaging at £272,500.
But there was also heated bidding on residential investments including regulated tenancies which achieved an average price of £117,750 reflecting an initial yield of 5.6%, while demand for ground rents with more than 80 years left to run on the lease sold strongly for an average yield of 5.4%.
The continuing enthusiasm for land sites located in the South East with planning permission for residential development pushed prices to an average of £340,000 and success rates to 75%. A freehold site with planning consent for the construction of two three bedroom houses at The Elephant & Castle sold for £400,000 against a guide price of £360,000.
Robin Cripp, a&r’s chairman and principal auctioneer, said: “This was a really ‘hot’ auction and a good note to end the first half of the commercial year on. The atmosphere in the room was bubbling with enthusiasm and we achieved very strong prices particularly for London properties. “There was real interest in investing across the spectrum and continuing confidence in the durability of London property as an asset class in its own right. We anticipate this trend will continue when the market re-opens in September. Auction buyers can now expect robust competition for stock in London and our vendors are reaping the best possible financial rewards in the fastest time.”
The next Andrews & Robertson auction takes place on 23 September at the Hotel Russell, Russell Square, WC1 for which we are now accepting instructions. 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 or Jeremy Lamb on 020 7808 8530.