The latest Commercial Auctions market review reports that the average sale price for lots sold at auction is 15.7% over the guide price.

The firm attributes this success to realistic reserve prices set by motivated sellers.

According to the report, lots offered at auction in the first half of the year rose to 2,800 compared to 2,400 in the same time in 2009, increasing the amount raised to £427 million. Furthermore, the firm predicts total investment volumes will total £26 billion for the entire 2010, resulting in a 12% rise from the 2009 total of £23.3 billion.

Savills identified that smaller lot sizes have seen higher achieved prices in relation to guide prices due to the greater volume of buyers in this market. However, the report states that funding remains difficult to attain as lenders remain cautious and on average only 70% of the purchase price is generally available to buyers, giving cash rich investors a clear advantage.

Simon Parker, Head of Commercial Auctions, comments: "Recovery remains tentative but with void rates dropping and more lots expected to be released into the market, we predict there will be some excellent opportunities for cash rich buyers."

In terms of success rates, the 2010 research reports showed an all auction decline to 69% from 72% in 2009 although it was able to maintain its own success rate close to 90%. Of those lots sold in the past year retail remained the largest sector accounting for 84% of the total commercial auction totalling £198 million. A Savills survey carried out earlier in the year, finds that buyers today have reported being less sector specific with covenant strength and property location being priorities in determining which property to buy.

Editors note: Data sources for the report include Essential Information Group (EIG) as well as Savills in house research team.