Ray White Commercial achieves 91% investment auction clearance
Ray White Commercial’s investment auctions achieved a clearance rate of 91.4% for the first half of 2015, according to the latest edition of the group’s Auction Insights report.
Ray White Commercial senior director auctions and investments, Richard Impiombato, said total auction sales of $151 million were achieved over the six months.
“Passive investment property with the ‘trifecta’ of a long lease, secure covenant and attractive location continue to be in strong demand.
“These property clearance characteristics and consistent high clearance rates in most sectors demand that auctions be implemented.
"We trust these consistently strong results will help remove any resistance to auctions.”
Mr Impiombato said notable Ray White Commercial auction sales for the June quarter included a $22.1 million sale price for a development site in the Belconnen Town Centre in Canberra, which attracted 11 registered bidders.
“Two large sales of $22.1 million in Canberra and $8.5 million at Vermont South in Melbourne underwrite the residential development site sector which had a clearance rate of 62.5% for the June quarter,” he said.
Mr Impiombato said the clearance rate for vacant buildings soared from 53.6% in the March quarter to 82.6% in the second quarter.
“This result proves the effectiveness of the auction process for what are traditionally more difficult and time consuming assets to divest from,” he said.
“It’s also worth noting properties in this sector averaged only 40 days on the market.”
