Residential Auction Market
In Q1, Allsop Residential Auctions sold 406 lots for a total value of £113m (success rate 76%).
Since then Allsop has raised £66m from the sale of 228 lots (76%) from its 30 May residential catalogue and £38m from the sale of 133 lots (71%) from its 18 July residential catalogue. This has brought the total raised in 2019 from the sale of residential lots to over £217m.
May auction highlights
Of the total raised in May, approximately £57.3m was generated from properties located in the South-East. Of these, 111 lots with a combined value of £45.5m, were situated within the M25.
The most valuable lot to sell under the hammer in May was lot 33, an unbroken freehold building in Eton Avenue, Hampstead, London. Offered to the market for the first time in 20 years, this valuable investment was arranged as seven self-contained, six non-self-contained flats. Mainly let and producing over £181,000 pa it sold at £4.66m. Also in London, lot 196, a vacant freehold terrace comprising of three, two-bedroom flats in sought-after Chiswick sold at £1.7m
The largest sale of the catalogue achieved prior to auction was lot 66 a half acre site in South West London’s Colliers Wood. Currently occupied by eight, fully-let industrial units generating £101,650 pa, the site has the potential for redevelopment, subject to planning consent. Lot 185, a well-located block of flats with a house and planning permission to convert into three apartments and one, two-bedroom house on Long Acre, in the heart of Covent Garden, also sold prior to auction.
Indeed, investments with potential for redevelopment remain in demand. Lot 28, a freehold office building with an application for permitted development submitted to convert the site into 15 flats in Wembley, sold at £1.38m.
Although there is still an air of caution in the room, buyers and sellers are continuing to trade
July auction highlights
The largest lot of the catalogue was lot 54 a former office building in Slough. Phoenix Building was offered with permitted development rights for conversion to 31 self-contained apartments with a total area of 12,370 sq ft. It was sold prior to auction from a guide of £3.25-3.5m.
The highest price achieved under the hammer was lot 114, 8 Inglewood Road, West Hampstead, London NW6. This freehold mid terraced building is arranged as five self-contained flats. Four flats are let on assured shorthold tenancies and one is let on a regulated tenancy. It is producing £80,312 per annum. It was knocked down for £1.555m reflecting a gross yield of 6.69%.
The ongoing political chaos and the paralysis at Westminster caused by Brexit and the Conservative leadership contest became the new normal in the light of Boris’s appointment. Although there is still an air of caution in the room, buyers and sellers are continuing to trade.
Attractive reserves and appropriate guide pricing is still producing healthy competition and strong results. In room activity has become an effective combination of sales under the hammer and a race between bidders to sweep up lots that didn’t quite meet their reserves. In some cases unsold lots are achieving above reserve immediately after having been offered. It seems that initial timidity is giving way to a post-sale clamber for available stock.
The next residential auction will take place on September 19th at The InterContinental London Park Lane, W1J 7QY.
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