Introduction and forward
The first half of 2024 has been a period of remarkable growth for the UK commercial property auction market. The latest Acuitus Commercial Property Auction Data (cPad) report reveals that the second quarter of 2024 saw 353 lots sell at auction for a total of £206.3m. This robust performance in the first half of the year has led to the total volume of H1 2024 sales hitting £423.3m, significantly above the previous peak we saw in H1 2021 of £348m.
Acuitus chairman and auctioneer Richard Auterac comments, “The auction market has been particularly robust in the first half of the year.” The increased level of supply hints at the commercial property market turning a corner, with the combined number of lots sold in H1 2024 amounting to 696 in total. The cPad All-Property prime yield remains at 7.04%, and the secondary yield is at 11.25%.
Acuitus-news/acuitus-cpad-report-q2-2024/
At World of Auctions, our lead auctioneer Edward Swindells and his team have been encountering clear dividing lines in the regional commercial property and investment market. These lines are clearly defined into two separate groups where investors/bidders will consider an asset a viable opportunity to bid if the yield is not only strong enough but also well evidenced and with good longevity.
Conversely, those assets which are seeking an end user coupled with a strong return for the initial investor, and subsequently have tighter yield margins. Are being clearly ignored by active cash-rich investors, no matter how attractive the Auction guide price looks at first offering.
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Auction market dynamics
The auction market dynamics are evolving, with sales now almost exclusively taking place online and more auctions being held. This has made the auction process more efficient and accessible for asset disposals. The shift towards online auctions and increased regularity has significantly impacted investor behaviour and market dynamics.
Remarkable Growth
The first half of 2024 has demonstrated remarkable growth and activity in the auction market, setting new records for turnover and lots sold. The overall outlook for the auction market remains positive, with continued high levels of interest and participation. As we move into the second half of the year, we at World of Auctions remain committed to providing our clients with the best opportunities in this vibrant and evolving market.