Secondary commercial yields continued to fluctuate at Strettons’ auction on 21 October, closing at an average of 8.7%.
This figure was up from 7.3% at the firm’s last sale in July.
The auction, at the Grand Connaught Rooms, WC2, raised £13.2m as 63% of 82 lots sold.
This was £2m more than July’s total and reflected an improvement in values of commercial stock. Prices at the sale ranged from £225,000 to £665,000, while in July they spanned £98,000 to £410,000.
A block of 33 flats in Kingston upon Thames, Surrey, achieved the highest price of the day. Producing £131,700 pa and guided at £3m-£3.3m, it sold for £3.4m.
A freehold shop with residential upper parts in Thornton Heath, Surrey, producing £22,000 pa, sold for £300,000 off a guide of £275,000, reflecting a net inital yield of 7%.
