AUCTIONnews
UK PROPERTY AUCTIONS ANALYSIS
Bang on
the money
talks to
D avid Sandeman of EIG
With the current state of the property market,
there has never been more interest in the
property auctions. Hardly a day goes by without
a national newspaper or major news channel
talking about auctions. In this month’s article,
with the help of some illustrative graphs, we
will be looking at the growth of auctions, the
reasons behind it and what the future holds.
GRAPH 1
RES LOTS OFFERED vs COM LOTS OFFERED
1999 - 2008
Lots on offer
30,000 Graph 1 shows the increase in the level of lots being
offered, both residential and commercial, over the last
10 years. Commercial lots have increased from 3,406
25,000
lots per year to a peak of 6,096 a year (78 per cent),
and residential lots have risen 68 per cent from 16,690
20,000 in 1999 to 28,104 last year. The growth in the number
Res Offered
of lots is mainly due to two factors. Firstly the growing
acceptance and realisation that auctions are no longer
15,000
the sale of last resort, but a ready market place where
properties of value can be brought and sold. Secondly,
10,000 the availability of information on what is coming up
for auction being made available over the internet.
In 1999 the main thrust of the marketing of
5,000
lots was by press adverts and the mailing of the
auction catalogue. The internet is now seen by many
olume
Com Offered
V 0 auctioneers as the prime source of enquiries for their
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
stock, and with the auctioneer’s sites and others such
Auction Year
as our own
www.eigroup.co.uk, it is very much easier
for the public to find out what is coming for auction.
GRAPH 2
RES LOTS TOTAL RAISED vs COM LOTS TOTAL RAISED
Ups and downs
Billions
1999 - 2008
£3.5
Graph 2 shows how the residential and
commercial sector in 1999 each raised just over
£3.0
£600 million. The commercial market peaked
in 2006 at just under £2 billion, then declined,
£2.5
due to the decrease in the number of lots being
offered, to just under £1 billion in 2008.
However the residential market has peaked
£2.0
at just over £3 billion worth of property in 2007,
and again fallen away in 2008 to £2.25 billion.
£1.5
The increases in revenue seen 1999 -2006/7
Res Total Raised was driven by the increase in the number of
£1.0
lots offered, a sustained high sales success rate
and the overall nationwide increase in property
r
aised
£0.5
values over the period.
al
Com Total Raised
The fall off over the last 18 months is due to
T
ot
£0.0
three reasons. A decrease in the average lot size,
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
a reduction until this year in the overall sales
Auction Year
rate, as shown on a later graph and thirdly, the
general fall in property values.
62 JUNE 2009 PROPERTYdrum
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76