Allsop raised over £38m and achieved a 77% success rate at its July residential sale. A full auction room at the InterContinental Hotel saw 180 lots go under the hammer. Despite the strong attendance, the result is down on last year’s figure of £52m but rising.
Pricing in the market is highly sensitive, with those vendors willing to adjust their guide prices to reflect current market conditions seeing greater interest and competition from buyers in the room.
On-going political uncertainty, and concerns of a forthcoming interest rate hike, saw potential buyers express caution, with a growing number of bidders wishing to negotiate on unsold stock. More than £3m was raised from seven lots in this way, before the sale was over.
However, good quality, high value lots still drew significant interest from bidders. Lot 24, a three-bedroom flat in Hendon, north London, spanning 1,733 sq ft and located in a purpose-built block, sold for £1.25m – the highest price achieved on the day and well in excess of its guide.
Whilst, lot 56, the largest of the catalogue, a Grade II Listed former mill in Stockport, sold prior to auction following exposure at a guide of £7m. The building has consent for conversion to a mixed use scheme, including 213 apartments and leisure space.
Despite concerns about prices of higher value London property, lot 60, a six-bedroom house in the west London suburb of Ealing sold under the hammer for over £1m.
Gary Murphy, Partner and Auctioneer at Allsop said: “At just over 200 lots, this catalogue was a relatively small one for us. The selection of lots featured in July’s catalogue was dictated by the willingness of sellers to accept a more conservative approach to pricing – and not all were prepared to make the adjustment needed to attract interest. Add to this, a growing reluctance to sell in a softer climate – particularly if you don’t have to – and supply is further restricted.
“We are seeing the market correct in front of our eyes. Well located stock at sensible reserves is drawing competition and producing good results. But deepening caution across the market has resulted in many potential bidders sitting on their hands and waiting to negotiate on unsold stock.
“As is usual in times of short-term uncertainty, long term investments fared well. Regulated tenancies sold comfortably and demand for freehold ground rents was sustained.”
Allsop’s next residential sale will be held on 13 September at The Cumberland Hotel, Great Cumberland Place, London W1H 7DL.
Entries invited until 17 August.
Notes to editor
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.
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