In spite of a busy crowd on auction day, it was evident that wider economic challenges were making bidders more cautious and this reflected in lower hammer prices being achieved across the board for the lots sold on auction day.
£5,133,050 was raised in total from the sale, an impressive total given the air of caution being demonstrated by the audience both in attendance and those bidding remotely.
A good barometer of market conditions is the staple terraced house and whilst all of these sold either before auction, or on the day, it was clear that prices were consistently hitting just over the £100k mark. In post covid times when markets were racing similar terraced houses were typically selling under the hammer for £110,000 to £125,000, reflecting buyers concerns.
With interest rates rising, periods of contraction in the UK economy and increasing prices, buyers are being more cautious over the prices they are prepared to pay in the event market conditions remain this challenging for the rest of the year.
Bucking this trend was the sale of land, which saw high prices being achieved in some cases. One such example was Lot 2, comprising 13.35 acres of agricultural land in Cropwell Bishop, guided at broadly £9,360 per acre. Bidding in the room was strong between a number of farmers with it eventually selling for £153,000 (reflecting a very strong £11,461 per acre).
Industrial properties remained popular, but price expectations from Sellers remained high and not reflective of current market conditions meaning that some didn’t quite hit the reserves in the room, but sales were quickly agreed after the auction. A prime example of this was the 7,660 sq ft block of industrial units at Trentview Court in Nottingham, guided at £900,000. Whilst bidding fell just short in the room, a sale was quickly agreed post auction for almost £1m after the sale with an immediate exchange and 28 day completion under the usual auction conditions.
Well secured commercial property investments faired well, the highlight being Brisbane Court in Newark comprising eleven shops and six garages with a reserved annual rent of £80,900. Guided at £450,000, the property saw fast paced bidding by national investors vying to secure the income, it eventually landing on £735,000, a fantastic result for the Vendor client.
A number of unusual lots were offered in this sale including a mooring by the River Trent in West Bridgford guided at £20,000+ which sold for £37,000. A particularly rare lot included 13 car parking spaces in the heart of Nottingham City Centre, guided at £100,000+ and which sold to a local investor for £130,000. Acting on behalf of a regional development company, various low value lots were sold as a part of a cleaning up process of their ownership. One such example were the roadways and land at Padge Road in Beeston, guided at £500 and which sold in a competitive round of bidding for £6,600 to a speculative bidder in the room.
With such a high level of sales in the room, the auction was regarded as a great success, but the challenging economy is affecting peoples view on what they are prepared to pay, an important lesson for people to take away when considering either buying or selling in todays fast paced auction market that is regarded as the coalface of the industry.
