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Commercial Auction Summer Review 2017
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Vendor analysis

Vendor analysis

Volume of disposals by vendor type and sales 2014 to 2017

The most noticeable trends that become apparent when viewing the below graph relate to a sharp increase in sales for Private Property Companies and a significant reduction in sales on behalf of Receivers.

As mentioned in our 2016 annual review, last year saw a surprising increase of Receivership sales, predominantly the result of the break-up of large loan-book portfolios.The winding down of these portfolios and the strong market conditions have seen Receivership sales reduce to just 5% of total value in 2017 compared to 23% last year and a 5-year average of 12%. Interestingly, at £792,000, the 2017 average lot size for Receivership sales is noticeably ahead of the 5-year average of £607,000.

Sales on behalf of Private Property Companies reached £221 million, 63% of total value. This compares to 2016 figures of £173.2 million/47% and a 5-year average of £177.5 million/59%. Average lot size this year for Private Property Company sales has increased by 21%. The notable increase in sales is the result of greater appetite for trading and also the desire to capitalise on the strong demand that is abundant in the market, particularly for the better quality, well located assets.

The Private Investor remains a continued source of sales and one for which both the value and volume of sales increased last year, to £48 million and 14% respectively. We have noted that changes to taxation in the residential sector have resulted in new private buyers entering the commercial auction market. As this evolves further, we may well see that sales on behalf of the Private Investor increase in the future as more of these new buyers begin to trade.

Institutional sellers realised over £35 million of sales in the first half of the year whilst Corporate vendor volumes increased by 50% and sales on behalf of Quoted Property Companies achieved an average lot size of £1.05 million.

A selection of our clients

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