Auc­tion ac­tion

The Jewish Chronicle - - Property News -

ON THE day that PWC pre­dicted house prices “won’t re­cover un­til 2020” and the RICS d e c l a r e d t h a t t h e UK prop­erty mar­ket re­mained in stale­mate, All­sop re­stored con­fi­dence by rais­ing £47 mil­lion from 82 per cent of lots of­fered at its July 14 res­i­den­tial auc­tion. This suc­cess brings the firm’s re­ceipts from prop­erty auc­tion sales in just two weeks to more than £119 mil­lion. The to­tal in­cludes UK com­mer­cial sales of £57.3 mil­lion and Ir­ish prop­erty dis­pos­als of 16.2 mil­lion eu­ros (about £14.2 mil­lion).

Buyer de­mand at the July 14 sale was ex­tremely strong, as a packed room saw sea­soned in­vestors and first-time buy­ers com­pet­ing for lots. In all, 236 prop­er­ties were suc­cess­fully sold.

Gary Mur­phy, part­ner and auc­tion­eer, com­ments: “Re­cent mar­ket com­men­tary is at odds with our ex­pe­ri­ence in the auc­tion room. Buy­ers were com­pet­ing hard and some were com­plain­ing that prices were too high.”

One of the most pop­u­lar deals of the day was a pent­house apart­ment over­look­ing the Olympic Sta­dium. The fam­ily who made the win­ning bid has had a re­cent flurry of suc­cess at All­sop auc­tions, hav­ing bought a pent­house in Dublin on July 7. A bid of £435,000 se­cured a three-bed­room apart­ment with un­ri­valled views of the Olympic sta­dium. They will be new land­lords to the BBC, which will use the apart­ment as its an­chor stu­dio dur­ing the games.

An­other high­light was 19 Buck­ing­ham Road, Canons Park, HA8. Sold by the Lon­don Bor­ough of Har­row, it is a free­hold build­ing on a site of about 0.125 hectares (0.31 acres) oc­cu­pied by a two-storey of­fice build­ing and park­ing for 18 cars. There is po­ten­tial for change of use to com­mu­nity or ed­u­ca­tional (D1), sub­ject to con­sents. It went for £1.075 mil­lion (guide: £700,000 plus).

The morn­ing saw a broad se­lec­tion of reg­u­lated ten­ancy in­vest­ments, com­pris­ing in­di­vid­ual houses and flats, 17 on be­half of a quoted ven­dor. Yields es­tab­lished un­der the ham­mer av­er­aged four per cent (na­tional av­er­age for H1 2011 is 4.26 per cent). Buy­ers in­cluded pri­vate in­vestors, cor­po­rate spe­cial­ists and ten­ants. The sale lasted al­most 10 hours, end­ing with a groun­drent session of 49 lots, many with low in­come but valu­able re­ver­sions. “The ground rent mar­ket is pretty re­silient” says Mr Mur­phy. “Spe­cial­ist in­vestors were out in force, but are ev­i­dently dis­ci­plined when it comes to set­ting lim­its on bid­ding for this type of stock.”

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