BidX1 puts 54% success rate down to client strategy
BidX1 blamed a difficult market and its clients’ strategies of setting high reserve prices for a success rate of 54% at its July auction.
The digital platform sold 40 of the 75 lots offered at its online auction on 24 July, raising more than £9m.
BidX1, which started holding online auctions of UK property in October 2018, said that the sales rate was a result of the strategies of corporate clients who needed to prove a property could not sell before they were prepared to reduce their reserve prices.
BidX1 blamed a difficult market and its clients’ strategies of setting high reserve prices for a success rate of 54% at its July auction.
The digital platform sold 40 of the 75 lots offered at its online auction on 24 July, raising more than £9m.
BidX1, which started holding online auctions of UK property in October 2018, said that the sales rate was a result of the strategies of corporate clients who needed to prove a property could not sell before they were prepared to reduce their reserve prices.
“In this case, the headline results do not reflect the reality of the auction,” said Oliver Childs, BidX1 head of commercial auctions. “Many of our clients are multi-lot sellers who for their own corporate strategies require us to find out where the market is and give feedback. The market is difficult but there is a lot of pent-up demand for property where investors can add value either through planning gain or refurbishment opportunities.”
According to the most recent figures from Essential Information Group, the average success rate for property auctions across the UK in June 2019 was 71.2%.
BidX1 was established in Ireland during the property crash in 2009. Since its UK launch last year, the auctioneer has heavily marketed itself as a flexible alternative to ballroom style auctions, enabling sellers to track potential buyers through its online registration system and encourage them to bid.
The auctioneer said that its July sale online catalogue was viewed in 93 countries in the run-up to the auction and received a total of 3,150 bids on the day.
One of the most highly anticipated lots on offer was Cannock Cricket and Hockey Club, a 25-acre sports ground located in Cannock, Staffordshire.
Listed for sale on behalf of James Liddiment and Paul Greenhalgh from Duff & Phelps, acting as fixed charge receivers, bidding for the asset started at £600,000. After a flurry of activity the property finally sold for £1.45m, achieving 142% over the guide price with 729 bids placed and smashing BidX1’s record for the highest number of bids received.
BidX1’s next UK auction will be held on Wednesday 18 September.
