Brendons Auction, London Ealing Hotel, Wednesday 11th July 2012
Today PropVestment attended the Brendons auction with a client looking to bid on a lot.
As usual we had done our homework in terms of reading all the legal packs and researching rental and resale value of potential buys.
What was very surprising when we got there, expecting 400 people like the last Brendons auction was only around 30 people. Further 7 of the 18 lots “SOLD PRIOR” or “WITHDRAWN”.
Ultimately only 2 of the remaining lots sold, both of which went considerably over guide. Both were development potentials that needed substantial work to be done in them. Our client unfortunately got outbid with the sale going 30% over guide.
All the other 9 lots, thats 50% were “UNSOLD” due to reserves not met or no bids whatsoever.
Property Market Analysis:
- Sellers holding out at unrealistic prices.
- High reserves show low confidence in market prices and auction mechanism.
- Sellers bidding mainly on “bargain” or “distressed” properties with a quick refurb and resell in mind.
- Low attendance, means low volumes in market, potentially as finance remains scarce.
- There were no under 30s bidding. Mean no first time buyers.
It is clear the property market is struggling, finance must be opened out. People with finance are extra cautious. They are only investing where there are strong returns at low risk.
Uptill now we have seen all the auctions we have visited and analysed as booming with high sales and lots of people, seems like that hype is slowing. Possibly as this was not in central London there was lack of presence of cash rich overseas investors.
We currently have many off the market properties in London, please contact us for exclusive deals. We do not publish everything online. Email info@PropVestment.com
Many below market value deals and development projects.
“There is always an opportunity to make money in property”