Buyers not sold on auction as properties fail to sell
Published 24/09/2011 | 05:00
The organiser of a distressed property auction has claimed the event was a "success" -- despite a substantial number of the properties failing to sell.
Only 56 properties were sold yesterday for a total of €9.25m -- even though more than 1,000 people packed into the ballroom at the Shelbourne Hotel in Dublin for the event.
It was the third auction of distressed properties held by Allsop Space -- and represented a sharp drop on the €16m-plus achieved in the second auction in July, when almost 80 lots were sold.
Twelve failed to sell under the hammer when the bidding fell short of the set target price -- although two of those sold afterwards at the guide price.
However, banks and other sellers may be concerned that yesterday's lower-than-expected results may be a sign that some of the steam has gone out of the auction scene.
At least two major agents, including Savills, have cancelled plans for bumper auctions this autumn and two other bumper auctions earlier this year were flops.
Nevertheless, auctioneer Stephen McCarthy of Allsop Space said he was happy with the business conducted yesterday.
"This equates to an 84pc success rate," he said, in line with average auction results in the UK. Earlier Irish auctions had a hit rate of 97pc.
The top price yesterday was €1.15m for a block of 14 apartments and four commercial units at 64/65 Prussia Street in Stoneybatter, Dublin 7 -- €300,000 more than the guide price.
However, there were none of the trophy properties such as the Ailesbury Road house which sold at the last auction for €2.3m.
The cheapest property sold yesterday was a Bundoran two-bedroom apartment, snapped up for €42,000.
It was one of seven properties which achieved over double their guide prices but the most valuable of these -- a shop and flat at 2 John Street, Gorey, Co Wexford with a €50,000 guide price -- sold for only €120,000.
Another sale which achieved double its guide was a riverside period house on 3.8 acres, with private jetty and slipway in Rooskey, Co Leitrim. It also had a €50,000 guide and sold for €107,500.
Telephone bids came from Luxembourg, Geneva, Australia and the UK, but more than 90pc of the buyers yesterday were believed to be Irish.
Mr McCarthy expressed confidence that Allsop Space's next auction in November will have around 100 properties, including some trophy properties.
There were three Rathgar Dublin 6 properties in yesterday's auction including 67 Rathgar Road, a period house in 10 flats, which achieved €485,000 or 39pc over its guide price. At the peak of the boom a similar house might have fetched €2m.
An Edwardian house in Bray, Co Wicklow, also failed to sell despite bids reaching €365,000. The three-storey house was in five flats and its guide price was €375,000.