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In the August 2011 Issue of Property Investor News
Auction Review
Savills held their latest London auction at the Millenium Hotel at Grosvenor Square, Mayfair on 25th July. There were a total of 131 lots on offer and 109 were sold (83%), raising a total of £23,680,900.
Chris Coleman-Smith, Savills lead auctioneer said: "We were pleasantly surprised in getting the results we did as the 'summer holiday period' does affect the market. Despite some regulars being absent, the positive atmosphere in the room felt more like February than July."
According to Coleman-Smith the auctioneers did not have an indication from prior viewings that the auction would achieve the results that it did.
He continued: "It was a really full room and there was strong interest in many of the London lots yet prior viewings were not exceptional. As finance is still 'tricky' most are cash buyers or are using bridging strategies. Builder-developers are always in the room but we had some new investors present alongside some of the regulars. Buying to sell is now more risky, so some are buying property which needs 'work' to add value to then obtain a mortgage as a refinancing strategy if they have used bridging finance. Clearly careful attention to the numbers is needed to ensure the effort is worth the risk as well as the costs when using bridging finance."
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