Commercial property sale prices over the next 3-6 months are likely to set the benchmark for the recovery in market performance over the following 12-24 months, says a Colliers International expert.
“In these uncertain times we expect sale and leasebacks and off-market transactions to be popular,” says Gareth Fraser, Auckland Director of Investment Sales at Colliers.
“However, there will also be a period of uncertainty around values. Auctions provide a transparent way for both vendors and purchasers to ascertain what market values are.
“Bidders can see their competition and vendors can assess what the market is willing to pay for a property, before they tell the market what they are willing to accept.
“In previous times, going to auction was a simple process. However, current conditions have changed this, such as physical distancing protocols, Level 2 restrictions on group gatherings of more than 10 people, and potential fear of crowds due to Covid-19.”
In light of this, Colliers has reviewed its auction processes and come up with a market-leading solution.
AuctionsLive – an online auction platform that is widely used in Australia – will be offered to vendors for all Colliers auctions. Bidders can choose between attending online or being present in the auction room.
Colliers’ auctioneer, Robert Tulp of Apollo Auctions, is already well acquainted with the AuctionsLive platform.
“I’m excited to use this market-leading technology as part of Colliers’ comprehensive commercial property auction services.
“AuctionsLive offers a hybrid approach, with some bidders able to be in the auction room while others attend virtually.
“While we believe most bidders will still want to be in the auction room, the wide adoption and acceptance of video conferencing during Covid-19 makes it clear that fully virtual online auctions can work.”
Charles Cooper, Auckland Managing Director at Colliers, says a key benefit is that campaigns can continue even if the Covid-19 alert level jumps around.
“A full virtual auction could be undertaken successfully with all bidders, vendor and agents logging in remotely, if New Zealand reverts back to Alert Level 3 or 4.
“The platform also takes away issues around restrictions on group gatherings or fear from any bidders or vendors around public gatherings.
“In these extraordinary market conditions, the transparency of the auction room will be a vital tool in restoring confidence.
“Colliers’ market-leading hybrid auction capabilities will allow us to deliver this transparency and confidence in the coming weeks and months.”