Hirshfields’ Howard Harris believes that, in the current climate, it is difficult for auctioneers to achieve the prices of three months ago.
Nevertheless, of the 105 mainly commercial lots on offer, 38 sold prior, 51 sold on the day and two lots sold afterwards to raise about £6.5m.
A significant factor was the disposal of 66 of the 70 properties entered by Tower Hamlets council.
“These properties proved very attractive,” commented Mr Harris. “Properties sold by a council have usually not been on the market for a very long time. The tendency of councils to be lenient on rents is another incentive to would-be purchasers looking for an investment with good growth potential.”
But it was a straight refurbishment opportunity that drew the highest price for Tower Hamlets.
University House, Victoria Park Square, London E2, offers 29,707 sq ft on a 0.49-acre site. The freehold, with vacant possession on completion, sold for £990,000.
“Despite the present harsh conditions,” concluded Mr Harris, “some within the market seem to be convinced that prospects will improve in about six months.”
