The latest Acuitus/IPD cPad Commercial Property Auction Market Flash shows that there was a 30% increase in total sales volume for the auctions in July in comparison to the corresponding period last year.
Encouraged by fresh levels of investor demand in the auction room, a growing number of property owners now believe the time is right to put their assets up for sale.
A total of £82.5m of commercial property assets sold at the major July auctions with an average lot size of just under £500,000.
Despite a continued backdrop of High Street gloom, retail assets dominated the sales accounting for 72% of the properties sold. Investors are also showing a new appetite for assets outside the ‘safety’ of London: 81% of the properties sold during the July auction season were located outside of the capital.
Acuitus auctioneer, Richard Auterac, comments: “The conditions for selling are now the most conducive we have seen for many months. There is now a market where the expectations of buyers and sellers are being met.
“However, like the economy as a whole, recovery is fragile and investors have to proceed with the utmost care and caution. The majority of commercial property assets offered for sale at auction still require experienced investors who have both equity and asset management expertise.”
cPad is a joint initiative between Acuitus and IPD and utilises auction sales data from EIG to provide a unique perspective on the commercial property market for investors. It creates a valuable snapshot of today’s market and draws on economic analysis by IPD to set the market in a broader context.
In the latest cPad, the IPD ‘Economic Scorecard’ which monitors the economic health of consumers and retailers reflects the most positive score since Q3 2007.
Phil Tily, IPD’s Executive Director & Head of UK and Ireland, comments: “The Economic Score Card average remained steady in Q2 2013 at 5.7, but then rose to 6.5 in July 2013. This represents the largest average score recorded since Q3 2007. Retailer confidence surrounding current and future trading conditions coupled with consumer confidence were the main reasons behind the recent rise.
“Although the retail sector continues to remain one of the UK’s weakest markets, optimism can be found from recent GDP figures. Output remains 3% below the peak of activity in early 2008, however, the balanced growth across all regions means that the UK is showing resilience in the face of slowing global trade.”
To download the latest cPad Market Flash, please click here
