Auctions and Covid-19 - March 2020
Below are details of properties that sold at auction prior to the Government Level 4 Lockdown.
As we come out of this phase, the market is uncertain; and from our research of the market, auctions are not due to recommence until June/July. It is likely that some sales occurring in the immediate future may be considered 'distressed sales'; as such they cannot be viewed as evidence which is reflective of the market.
So, what does that mean for property valuation? The International Valuation Standards (IVS) details how significant 'valuation uncertainty' is to be dealt with. In short, any valuations being undertaken at present will likely use evidence prior to the level 4 lockdown. The standards indicate that all conclusions must be well reasoned and backed by evidence. As such, all reports should be commenting on the current market environment but we cannot speculate at present how much change, (if any) has occurred to values since early March.
Following trends from research conducted by CBRE, prime industrial property is showing the lowest signs of impact in terms of rental reductions and incentives followed by prime office accommodation. The hardest hit areas are hospitality and retail, especially the lower C Grade premises.
Feedback from Banks indicates that, when assessing lending applications, a greater emphasis will be placed on the 'strength' of the tenant.
If you have any queries or concerns and need advice please feel free to contact us.