52pc of bidders at latest Allsop auction were financed by banks
MORE than half of all registered bidders and buyers who attended the Allsop Space auction earlier this month were bank financed -- the first time that loan-equipped buyers have been in the majority since the monster property auctions started just over a year ago.
The company says that 52pc of those registered to bid on the day had bank finance to varying levels of the purchase price.
The figure is significant as it indicates that banks may be getting back into the mortgage market once again and beginning to target investors.
AIB staff were in attendance at the recent sales session in search of potential custom for the next auction, which takes place in October. Staff from both Bank of Ireland and Ulster Bank had attended a previous auction in search of mortgage lending clients for the session on July 6 -- a factor which has obviously had an impact.
Robert Hoban of Allsop said: "The figure is a significant change from our first auction here last year when just 14pc of bidders and buyers came with finance and the overwhelming majority were cash buyers."
Post-auction statistics also show that a two-thirds majority were in attendance for business purposes rather than seeking a personal home -- 66pc were investors who were either buy-to-let landlords or developers seeking to complete or improve existing properties for sale.
Bank finance among Allsop bidders and buyers has increased steadily over the past year with successive auction sessions producing 14pc, 24pc, 40pc and now 52pc coming with viable loan approval.
The Allsop auction process is the only property sales mechanism in Ireland at the moment through which purchase prices are publicly verifiable and finance details are known.
Thus far, demand for property at the company's auctions has not waned. The most recent session saw 78 lots out of 82 sold under the hammer for a total of €11.3m with most properties exceeding the guideline estimate. Many also exceeded private treaty price norms for their property types leading to speculation that some buyers are getting "carried away".
Allsop Space has used its British/non-Irish side to its advantage, playing on a distrust that buyers now appear to have for wholly homegrown Irish auction processes after suffering under inaccurate guidelines from local agents for more than a decade. A number of local agencies have tried unsuccessfully to imitate the Allsop "monster auction" formula.
Market sources say that the Allsop element of the company will now compete in the Irish market in the long run, made possible by the fact that there have been significant reductions in the proportions of "stressed" properties included in their sales, more of which are now being offered for sale by solvent private vendors.
Allsop Space is a partnership between Allsop, the UK auctioneering firm, which has been running property auctions in the UK since the 1989 property crash in Britain; and Space, a Dublin-based consultancy.