JLL auctioneer Peter Cunliffe said: 'Pricing is stable at the moment--people are paying sensible prices for product. The first quarter of 2002 has been even stronger that that of Q4 in 2001, and yesterday's auction offering was of an extremely high quality.'
Notable sales included 5 Strait Bargate, Boston, Lincolnshire, let to NatWest Bank for a further 62 years for £805,000 ($1.14 million), which achieved a yield of 6.1%. And the Café Rouge in Wimbledon Village, South-West London was sold for £1.535 million ($2.164 million) at a yield of 5.62%.
According to JLL auctioneer Richard Auterac: 'Private investors who want to add quality property to their pension funds can now create the type of portfolio that an institution would have been envious of. The auction room currently provides private investors with the best access to quality property. Last year private investors were looking at the property market – their appetite is strong and now they are buying.'
Jones Lang LaSalle believes that the auction market at the moment is the most active and comprehensive investment sector for private individuals, competing extremely well against equities and other investments. There is more pressure on private investors to invest in property because returns elsewhere are poor. Commercial property is a new area for them but it's performing better that the stock market.
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