- September online auction raised £43.3m with 71 lots sold
- Largest lot (a freehold retail parade in Orpington) sells at £3.3m, beating pre-lockdown price
- 12 lots sold at £1m or above
Allsop’s September commercial auction, their fifth commercial auction this year to have taken place online, raised £43.3 million, with 71 lots sold. The online auction was held on the day the UK government announced a new series of COVID-19-related restrictions, further adding to the uncertainty, and resulting in an overall success rate of 77%.
Over the course of the auction, 1,529 bids were placed for the 92 lots offered. The auction was marked by strong competition for particular lots, with the margin above reserve for some surpassing 50%.
George Walker, Partner and Auctioneer at Allsop, said: “As cash buyers continue to act with caution given the uncertain market, this week’s auction saw a sharp focus on opportunities offering long-term development gains and secure rental income in favour of short-term yields.”
“We’ve seen a continuation of the trend observed at our previous auctions this year which is strong demand for sustainable income streams. Another asset class in high demand is bigger lots where buyers can add value in the longer-term and which offer wealth protection and reassurance in a cautious market.”
One example is lot 5 in Hampstead, a barber shop with three flats above sold at £2,015,000 (4.5%), 55% above the reserve price.
All three of the larger lots above £3m offered long-term value, and one particularly desirable lot was sold ahead of its pre-lockdown bid, as follows:
- Lot 34 Worthing, an office investment with development potential sold for £3,065,000 (6.9%) (£129.63 per sq. ft)
- Lot 52 Streatham, an attractive freehold bank and office investment with potential for future development sold at £3,250,000 (5.5%)
- Lot 30 Orpington, a freehold retail and residential parade which beat the pre-lockdown price by £50,000 selling at £3.3m
Retail assets comprised 69% of lots sold, with a wide margin spread ranging from 4.6% (in the case of lot 15, a long-lease Co Op in Honeybourne at £1,205,000) to 18% for a short let retail parade in Wrexham, Clwyd, sold for £600,000 (lot 64).
Allsop’s next commercial auction will be held online on 3rd November.
Notes to editor
About Allsop auctions
Allsop run the largest property auction departments in Europe through two highly experienced residential and commercial teams and is the UK’s number one auction house by transactions. We offer a wide range of lots covering residential vacant and investment properties, ground rents, land and development opportunities and secondary commercial lots. A minimum of six commercial and seven residential sales are held every year.
- Where a guide price (or range of prices) is given, that guide is the minimum price at which, or range of prices within which, the seller might be prepared to sell on the date at which the guide price, or range of prices, is published.
- The reserve price is the minimum price at which the property can be sold.
- Both the guide price and the reserve price may be subject to change up to and including the day of the auction.
Allsop is an independent property consultancy with a market-leading reputation for high quality service and integrity, covering the UK from our offices in the West End, the City, Leeds and Brighton. In addition to our position as the UK’s largest and most successful property auction house, we offer an extensive range of services for residential, commercial and mixed-use property.
We have the people, the skills, the experience and the drive to maximise value for our clients in any given market and like to do business in our own distinctive Allsop style – open, friendly and honest. Clients appreciate this, which is why so many stay with us over the long term.
In an unpredictable world, Allsop remains a reassuringly constant source of market knowledge, insight and expertise.
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