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Sunday 4 December 2016

Three-quarters of property auction buyers 'paid cash'

Ed Carty

Published 28/12/2011 | 05:00

ALMOST three-quarters of buyers in a series of property auctions earlier this year paid in cash, estate agents have said.

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Of the €52m worth of houses, apartments and commercial buildings sold, 72pc were bought by people without needing finance.

Estate agent Allsop Space is planning another five auctions next year, the first on March 1, and is aiming for 100 properties per occasion.

Robert Hoban, Allsop Space director of auctions, said there was a pattern of people buying who sold homes at the height of the boom and stayed out of the market.

"It's perfectly reflective of the reality we are in. There are lots of people who want to buy but they can't because there is no finance from the banks," he said.

"It's a distorted market. There's an assumption out there that anyone who buys at auction is a hardcore vulture, that it's blood on the streets sales, but that couldn't be further from the truth.

Boom

"A lot of people are lucky to have the cash and the pattern we have seen is that it was people who sold in the boom and stayed out of the market."

Some 314 houses, apartments and commercial buildings were sold in four auctions at the Shelbourne Hotel in Dublin, with only €6m coming from overseas bidders.

Mr Hoban added: "What is clear is, despite the downturn, the appetite for property within the Irish psyche is undiminished once the price is right."

Allsop Space had more than 160 registered remote bidders but only 39 were successful.

Some foreign buyers were based in Monaco, Gibraltar, Israel, Luxembourg and France. Mr Hoban also noted intense interest from Irish people living abroad, thanks to what he called sensible prices, including in the UK, the Middle East, Australia, New Zealand, US and Canada.

Almost half of the properties sold in the auctions were income producing and sold with tenants.

Other research into the sales found three-quarters of properties handled by Allsop Space were in the hands of a receiver or liquidator. Mr Hoban would not be drawn on how much further property prices could sink, with asking prices now falling at their fastest rate.

Allsop Space also said that, overall, the average sale price was 29pc above the reserve and in Dublin alone it was 25pc.

Irish Independent

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