Auction fever seems to be sweeping the nation when it comes to the sale of commercial property, according to UK Business Property.
Last month (June 2013) saw 156 property auctions held across the UK, which saw 2,868 lots offered and 72.6 per cent of available properties sold. This equated to £239 million in property being sold off. These levels of auction activity have not been recorded since 2,328 lots were sold at £381 million in June 2007.
Specifically, it was the commercial sector that saw 70.8 per cent of its stock sold, with commercial sales up by a huge 63 per cent since June 2012.
In total, it was the gains achieved that marked the fastest growth of the year, up by 25 per cent, 14 per cent, and six per cent for the month, quarter and the year respectively.
London remained the top 'safe haven' for investors, with 86.7 per cent of the stock auctioned in the capital being sold. However, this is following recent reports that many buyers are getting carried away with the market boom and are buying secondary sites for prime prices. In contrast, investors in Scotland were the least eager to buy, with only 58.2 per cent of the commercial lots in the country selling.
Auctions are usually a good indicator of sector health as they represent the 'impulse buy' aspect of the market, especially for those looking to expand their property investment portfolios.