Residential property takes a hammering at auction
THE first two houses to come to auction in the capital this year sold at a sharp discount to what they might have fetched at the height of the boom.
The homes, which went under the hammer yesterday, sold for slightly more than their guide prices.
One of them, in the upmarket area of Dartry, Dublin 6, sold for €1.55m -- €50,000 above its Advised Minimum Value (AMV).
However, the Edwardian house known as Dinard, 52 St Kevin's Park, would have made about €1m -- or 60pc -- more at the peak of the market.
The Lisney auction attracted three interested buyers who competed with bids of €50,000 before solicitor Brian O'Brien secured the property on behalf of a client.
The double-fronted redbrick needs modernisation. The home, which has a spacious floor area of 244sqm, has five bedrooms, three reception rooms, a kitchen, a scullery and a box room. It also has a long, private rear garden.
It was sold following the death of its last owner, a 103-year-old woman who had lived there for 84 years.
Bookie Paddy Power had expected the price might be higher and had quoted short odds of 9/4 that it would sell for between €1.75m and €2m. But some shrewd punters bet closer to Lisney's AMV and won with odds of 4/1.
Another house in sought-after Dalkey, Co Dublin, sold after auction for in excess of its €625,000 AMV.
The auction room was packed but there was only one bid of €600,000 for a house on Carysfort Road.
The three-bedroom period home of 142sqm was withdrawn from the auction, and agent Martin O'Mahony negotiated the higher price.
Mr O'Mahony believes the property, located within metres of Dalkey village, which is home to celebrities Bono, Pat Kenny and Enya, may have fetched €1.2m at the market peak.
Meanwhile, five properties that have been repossessed by the banks will be included in the largest property auction to take place this century.
Property owners from 22 counties are hoping to raise more than €23.5m at the bumper Real Estate Alliance auction in Dublin on April 30. With prices ranging from just €60,000 to €1.5m, the 70 properties include 40 homes, 11 sites, shops, a pub and a farm.
The five repossessed properties include a shop and four houses in Dublin and around the country.
REA chairman Michael Boyd says there will be opportunities to purchase at an average of 15pc to 30pc lower at auction compared with similar properties for sale by private treaty.