Having demonstrated that there is still life in the room, our second sale on 28 March continued to defy Brexit blues
The residential auction market has faced a challenging start to 2019. Turmoil in Westminster and continuing economic uncertainty has resulted in a reduction in the volume of transactions across the sector.
Despite this, the Allsop auction rooms have remained active. Buyers are keen to do business but have grown increasingly cautious. There has been some healthy competitive bidding. However, unless pricing is realistic, bidders are more likely to sit on their hands. This sentiment has resulted in heightened post auction activity both in the room and during the days following the sale. There is evidence too that some owners are postponing their decision to sell until a degree of stability and certainty is restored. Sellers acting in a fiduciary capacity, such as public bodies, housing associations and receivers, need not adopt such a strategic approach to disposal. These vendors are able to price attractively for today’s market conditions and have, as a result, achieved strong prices from the keen interest generated.
Our first auction of the year was held on Valentine’s Day. Despite the backdrop of weak results across other sales, a total of £57M was raised. The largest lot sold under the hammer was a freehold building in Fairlawn Avenue, Chiswick, London. Offered by receivers with planning permission for conversion, it fetched £1.9M.
Having demonstrated that there is still life in the room, our second sale on 28 March continued to defy Brexit blues. Another £57M sale brought the total raised for Q1 2019 to £114M. The sales rate is currently 77%. Owners were encouraged by the mood in the room and particularly the sustained interest in higher value assets. A short leasehold building in Charles Street, Mayfair, arranged as five self-contained flats, was knocked down for £6.6M from a guide price of £6M.
As we enter Q2, preparations for our 30 May sale are underway and we have been busy appraising a large quantity of good quality stock for immediate sale.