The final Cheffins property auction of the year saw development and investment lots sell for premium prices on Wednesday 6th December. Hosted at the firm’s salerooms in Cambridge, the sale grossed over £2.75m across eleven lots including land, investment opportunities and residential homes.
The highest price on the day was £890,000 paid for the Colourbox Montessori Nursery on Haverhill Research Park which offered a rental income of £61,065 per annum. Making in excess of £100,000 over its estimate of £750,000, the property offers the investor buyer a final gross yield of 6.8%. The modern purpose-built premises were constructed in 2015, with over 4,025 sqft of accommodation, car park and drop off area. It is situated on the Haverhill Research Park which is a 30-acre landscaped park with Enterprise Zone status and planning permission for over 450,000 sqft of development.
Interest in a series of development plots available proved that there remains a lot of confidence in the East Anglian property market. The most generous of these was a development site of eight partly-constructed residential units in Feltwell, near Thetford. This lot sold for 52 per cent above its asking price with the winning bid at £535,000 against a guide price of £350,000. Proving further strength in the local residential sales market, a cleaned five-acre plot just outside the picturesque Finchingfield village which had planning permission for a single new build property sold for £320,000 against a guide price of £200,000.
Also on offer were five separate land lots across the region which all sold for strong prices with the highest price being £191,000 paid for 8.5 acres of land at Guilden Morden, near Royston. The land offered two parcels of Grade 2 arable land bordered by mature hedgerows. It eventually sold to investors following competitive bidding in the room.
Ian Kitson, Director, Cheffins comments:
“This sale saw one of our most well-attended auctions of the year with frenetic bidding across a series of lots. There was a clear enthusiasm for development and investment opportunities with the highest prices paid for long-term income generating properties. The Colourbox Montessori School in Haverhill which saw competitive bidding from multiple parties, all of whom were looking to benefit from the strong rental yield available, was the headline lot, significantly exceeding client’s expectations. It is further evidence that in uncertain economic times, investors of all types still see property as a safe haven.
Development sites, or those with perceived longer term potential also faired exceptionally well with the eight unit partly-completed site in Feltwell soaring well over its guide price. This continues to prove that there a large proportion of individuals in the market looking for either short or long-term investments in the region. There is a continued confidence in the East Anglian residential market and opportunities offering strong yields remain popular in the absence of other financial investment options.
In general 2017 has proved to be one of our strongest years at the property auction with an 80 per cent sale rate and some stellar prices paid for key lots throughout the year. Residential properties have sold particularly well as a mix of end-users and developers look to pick up a bargain in the sale room. In addition, mixed-use properties have sold for premium prices as have any lots offering guaranteed investment yields. 2018 looks to continue much in the same vein with the catalogue for the next sale already showing some strong potential properties on offer.”
The Cheffins property auction has grossed over £13,300,000 across 2017 The next sale will be on 4th March 2018.