Allsop October Residential Sale Yields £51m as Confidence Surges (02/11/2009)
The 277 lot catalogue raised almost £51m from a continuously packed room, with 89% of all lots offered successfully sold.
If there were any doubts that recovery were underway, Allsop's single day residential sale on 29th October appears to have laid these to rest.
The 277 lot catalogue raised almost £51m from a continuously packed room, with 89% of all lots offered successfully sold. Whereas a year ago, the firm was regularly engaged in sales comprising 80% repossessions, with an average lot size overall of £114,000, the October 2009 sale was only 35% distressed and established an average lot size of £235,000; more than double that of 12 months previously.
Despite limited availability of finance, cash investors fought keenly for high value, good quality stock. In total, 6 lots sold for over £1m.
Assured shorthold tenancy yields averaged 8.3% (from a total of 45 lots). This shows a marginal improvement on the national AST yield of 8.6% reported in Allsop/EIG's research RAPID (Residential Auction Property Investment Data) in September of this year.
Speaking after the sale, auctioneer and partner, Gary Murphy commented;
"This has been one of the highest totals raised by Allsop from a single day residential auction sale. Market confidence has clearly returned to the auction room. We are seeing a 'top down' recovery as prices paid for higher value stock seem to be returning to 2007 levels.
Even the more speculative lots drew competitive bidding. Sites, with or without planning permission, are exceeding expectations."
Highlights from the sale include:
Lot 5
31 Hoxton Square, Hoxton, N1 6NN
A freehold town house, with office room, in a fashionable location - gross internal area approximately 265 sq m (2851 sq ft) Vacant
Guide £1.25m - £1.5m
Sold For £1.72m
Lot 11
5 & 7 The Chine, Grange Park, Winchmore Hill, N21 2EA
A freehold pair of buildings with C2 (Care Home) use. Potential for restoration to family houses, subject to consent. Vacant
Guide £750,000 - £800,000
Sold For £1.08m
Lot 24
10 Redesdale Street, Chelsea, SW3 4BH
A freehold well located mid terrace building internally arranged to provide 2 self-contained flats and a self-contained maisonette. Lower ground floor flat subject to an assured tenancy, raised ground floor flat subject to an assured shorthold tenancy and maisonette subject to a contractual tenancy. Producing £58,968 pa. Planning permission for a rear extension to first and second floor level
Guide £1.7m - £1.8m
Sold For £1.83m
Lot 220
Rombridge Works, 9 Como Street, Romford, Essex, RM7 7DL
A freehold site extending to approximately 0.044 hectares (0.108 acres) formerly the subject of planning consent to provide 6 x two bedroom apartments with office space. Now expired. Vacant
Guide £200,000+
Sold Prior £240,000
Allsop's next Residential Sale will be held on 15th December at the Cumberland Hotel, Great Cumberland Place, London W1. Entries are now invited.
List closes Friday 20th November.
Please click here to view the results.
For further information please contact:
Gary Murphy
Equity Partner
Allsop
DL +44 (0)20 7344 2619
Email gary.murphy@allsop.co.uk