Our regular buyer’s survey conducted at the point of exchange at the auction and now in its fourth year, has again revealed some interesting trends.
Have you bought a property at auction before?
We have seen a return to 2013 levels through an increase to 26% of new buyers to the auction (20% in 2014). Repeat buyers also remained high at 74%.
Do you intend to buy another commercial property at auction in the next 12 months?
With regard to buyers’ purchase intentions, 81% of our buyers stated their desire to buy again at auction within the next 12 months. This reflects a 10% increase in buyers’ sentiment over the 4 years since the inception of our survey and a good leading indicator of future demand.
How far are you located from the property you have purchased?
Once again buyers are located all over the country and indeed the globe. We have noted an increase in buyers coming from afar, (i.e. outside their home region) to purchase a property, highlighting not only our market reach but increasing confidence in the regions and a wider search for value.
How much do you intend to invest?
Buyers have indicated a fairly balanced spread with regards to how much they intend to invest. The greatest uplift in demand has been in the lower lot sizes with the £0-£250,000 band increasing to 12% (9% in 2014) and £250,000-£500,000 band increasing to 29% (23% in 2014).
Do you intend to use finance?
Surprisingly, when there are more borrowing opportunities we have seen a marked increase in cash purchasers, an increase of 4% on 2014, the highest proportion of cash buyers since 2012. This is an indication of buyers having larger saving pots due to economic recovery and the ongoing difficulty in securing finance for secondary property, particularly from the High Street banks.