Going, going ... house prices cut by 60pc
59 properties under hammer
GOING, going... but they're not gone yet. Auctioneers are slashing up to 60pc from the asking price of 59 properties that are going under the hammer today.
In a desperate attempt to kickstart the property market, they are holding Ireland's biggest ever one-day house auction. Ranging in price from €60,000 to €1.5m, the properties include houses and apartments, commercial properties and development sites.
The Government will also be watching today's sale very closely as it will give them a true valuation of properties across the country.
Michael Boyd of Real Estate Alliance (REA) said the properties were being priced to sell at an average of 15pc to 30pc lower than what similar properties might fetch in a private treaty in the current market.
"Overall investors can expect at minimum a 40pc to 60pc decrease in price from the height of the market in early 2007," he said.
In a further attempt to get people to sign on the dotted line on the day, REA has pitched the Advised Minimum Values (AMVs) or guide prices within 3-10pc of the reserve price. This means that once the bidding reaches the reserve price then the property is on the market and the successful bidder will be the person who bids the highest price at or above the reserve.
The cheapest house on the list, an end-of-terrace house in Navan, Co Meath, has already been snapped by a house-hunter for about €5,000 below its €95,000 AMV.
Also already sold is a four-bedroom detached house on a large site in Co Leitrim, which went for slightly below its €200,000 AMV.
The most expensive of the properties is a Galway city house which has a €1.5m AMV -- but this is less than half the €3.3m at which it was valued in 2007. Located at Bushy Park, the house known as Ballagh stands on 1.18 acres.
Today the cheapest house to go under the hammer is a two-bedroom, detached cottage, in Lisnagea, Effernagh, Carrick-on-Shannon, Co Leitrim, which is quoting €98,000.
Period residences figure strongly on the list, including 'Firmount' Clane, Co Kildare, a Victorian residence for which the Department of Defence is hoping to fetch €800,000.
Meanwhile, a number of commercial property deals were also transacted, most notably the Chief O'Neill's Hotel which was bought by an international hotel operator for €8.5m.