Residential property leads the way at Andrews and Robertson?s September auction.Residential lots with London postcodes, virgin stock, keenly priced small development sites, buildings in need of upgrading and ground rent investments offering long term value, sold strongly at Andrews and Robertson’s first sale of the autumn, raising?11.7m.
Regional investors flocked to the Grand Connaught Rooms, WC2, on 24 September, where a keenly priced portfolio of 18 residential and commercial properties offered on behalf of Swindon Central Properties Limited sparked competitive bidding.
On the market after a period of between 33 and 58 years in the same ownership the virgin stock proved popular with local buyers looking to asset sweat their investment, 13 of the 18 properties sold under the hammer and 1 post auction, a 73% success rate raising ?1.38m alone.
This included 100% of the residential investments which represented good value for investors looking to invest cash and equity, achieving yields of between 10 and 15%.Success rates on the day closed at 66% after 75 out of 115 residential and secondary commercial properties sold. Post sales pushed figures to ?11.97m and 67% within days.
With investors looking for long term security and value, eight reversionary ground rents were greeted with enthusiastic bidding raising a total of ?427,000, and average yields of 0.8%, while a further 15 non-reversionary investments sold for a total of ?172,500 and an average 3.4% yield.
Robin Cripp, proprietor and senior auctioneer, said: “Investors remain price sensitive and though demand for London residential property is notably strong we were delighted to find that where buyers perceive regional property has been priced to reflect value, then there was strong demand and some very good results.
“With lending on secondary commercial property still at a low and concerns about occupancy while the retail sector remains under pressure investors are also continuing to put security high on their list of requirements.
“Even in the residential sector when properties are located in regions such as Liverpool where the local economy is under pressure, it can prove difficult to engage with buyers unless the risk is reflected in the price.”
However the opening two lots of the day got the auction off to a strong start. The fresh to market homes in Villa Road, Brixton, SW9had some potential for redevelopment and scope for refurbishment. Offered on behalf of Lambeth Council and guided at ?575,000 plus each, they sparked heated bidding to sell for ?725,000 and ?705,000 respectively
6 Brunswick Villas, Camberwell, SE5: A large four floor terraced unmodernised house offered with vacant possession and on the market for the first time in more than 50 years, stirred high levels of interest pre-auction. Guided at ?450,000 plus, it made ?560,000.
Other successes included:
Andrews and Roberson’s next auction will be held at The Hotel Russell, Russell Square, WC1, on 5 November.
Chairman and Senior Auctioneer
24 High Street,
London SW19 5DX
Tel: +44 (0)20 8971 6780
Fax: +44 (0)20 8946 3683