Strong appetite for residential property, but investors remain ‘price sensitive’
Investors continue to snap up residential properties across the country, but will mainly only commit to deals that they perceive to offer good value for money, according to Allsop.
Following on from a successful commercial auction two days earlier, the company’s latest residential auction, which took place last week at The Cumberland Hotel in central London, featured 226 lots, including plenty of attractive property investment opportunities, with 184 lots selling under the hammer – 82% sales success – for a combined £72.5m.
The residential auction comprised of a number of high-quality, good value and well-located properties across all parts of the UK and Ireland, including plenty of strong investment opportunities in prime central locations. The average lot size was over £410,000.
Gary Murphy, partner at Allsop, commented: “With two weeks to the election and a general softening of success rates across the auction industry, careful management of sales prior and close attention to pricing on the day was critical to the outcome of our May sale.
“The room responded very well and, from the start, bidding was enthusiastic across a broad selection values and locations. It just felt a little easier than our March sale. There’s still a strong appetite for residential property – but it remains price sensitive.
“While there was interest from owner occupiers, Murphy said that there was “particular interest” from developers and investors. And, despite concerns that central London property values are correcting, he added that the firm “had some strong successes in the capital”.