Investor bidders compete for pyrite-affected apartments in Mayo where hammer drops at €1.22m

Apartments at Bruach Na Habhainn, Ballyhaunis, Co Mayo

Donal Buckley

Not all landlords are fleeing the market and for some not even pyrite will stop them engaging in competitive bidding to buy apartments. What may seem equally surprising is the extent of competitive bidding seen recently for 20 such apartments in a west of Ireland town.

Located at Bruach Na Habhainn, Ballyhaunis, Co Mayo, the units were offered with a modest reserve price of €400,000 equating to a yield of 36pc. Wilson Auctions explained that the low guide price was due to pyrite defects. Fully let, they were auctioned with a rent of €143,770 per annum or €599 per month each.

Prior to the auction, there were over 100 enquiries about the property and 20 parties registered to bid including Irish and international bidders online, by phone as well as bidders who attended at the auction in the agent’s showrooms in Dublin 22.

Ricky Wilson saw bidding open at €600,000 and it swiftly rose until it topped the €1m mark, where upon two bidders went toe to toe until the auctioneer dropped the hammer at €1.22m. That equates to a gross yield of 11.78pc and an average price of €61,000 per apartment.

The purchaser owns a number of investment properties in the west of Ireland.

The units were contained in two blocks, with one of those accommodating 18 flats and the other had two. With combined floor areas of 18,478 sqft, they included five three-bedroom units, 12 two-bedroom units and one one-bedroom unit. The apartments were described as being in “superb condition”.