A block of 12 flats in Gravesend, Kent, sold for £2.3m in the latest Allsop residential sale, reflecting an initial yield of 5.78%.
The freehold, detached block was the highest value lot sold and had been guided at £2.15m (lot 25A).
A further two lots made in excess of £2m. A flat in South Kensington, SW7, sold for £2.2m, a 6% yield (lot 8), and a site in West Drayton, close to Heathrow, with development potential, sold for almost £2.1m (lot 56).
These helped Allsop to a £40m total on 12 May, with 91 lots sold, a 77% success rate. More than 50 lots were withdrawn prior. A mix of investments sparked fierce competition that saw hundreds of bidders compete for certain lots.
On the day of the auction, buyers placed 3,722 bids, with 958 individuals having registered to participate.
Richard Adamson, partner and auctioneer at Allsop, said: “With a strong Q1 behind us and only one more residential auction ahead of the half-year mark, it’s abundantly clear that the auction market is proving robust amid challenging economic circumstances.
“Despite the uncertainty elsewhere in the market, investors see significant potential returns in residential property, particularly when priced well.
“Our team is overseeing competitive bidding on lots across the country, and it’s been especially noteworthy to see strong interest for London investments as investors return to the capital.”
Further highlights included:
- Lot 45 – a freehold former health centre in Leeds (pictured) extending to 6,261 sq ft. A planning application has been submitted by a third party for the demolition of the existing building and the erection of seven dwellings with associated landscape and parking. Among the most popular lots on the day of the auction, it received 200 bids and sold for £351,000 from a guide price of £150,000.
- Lot 8 – a long leasehold, self-contained flat with three bedrooms located in the affluent neighbourhood of South Kensington, SW7. It is subject to an assured shorthold tenancy of £78,000 per annum, was guided at £1.3m and ultimately sold for £2.2m after fierce bidding between 13 parties
- Lot 1 – a freehold detached three-bedroom house in Epsom, Surrey, was another popular lot with 149 registered bidders, receiving 541 bids and selling for £891,000 from a guide price of £350,000
Allsop’s next residential auction will be held online on 23 June 2022.
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