Receivership Sales: Can prices get any lower?

Receivership Sales: Can prices get any lower?

Receivership Sales: Can prices get any lower?It seems receivership sales are becoming more and more common as the banks try to sell off the properties seized from owners and developers who can no longer to pay their mortgages.

The largest receivership sale of properties seen in Ireland will take place next month. The auction, set for April 15th and which will be run jointly with Dublin estate agency Space will offer over 80 properties that receivers have slashed by at least half the price, if not more.  Stephen McCarthy director of joint agents Space explained, “We are quoting low prices to attract buyers from overseas and to ensure the properties will sell”.

Included on the line up is an apartment in Temple Bar for a mere €80,000, another in Portlaoise for €35,000, a three-bedroom semi in Tuam, Co Galway guiding at €45,000 and a whole a group of flats and offices at Tuskar House, John’s Gate, Wexford, with a reserve of only €210,000 – the building comprises of four one-bedroom studio apartments, two two-bedroom flats and three offices, the price works out at an average of €23,333!

With what’s on offer it isn’t surprising that there has been more than 1,000 requests for auction catalogues already.

Have Your Say

  • Receivership Sales: Can prices get any lower?
  • Do these properties offer real value for money?
There are 31 comments for this article
  1. Jack at 11:30 pm

    Most of the properties at this auction are investment properties subject to tenancy, so they are not homes for buyers as far as I can make out. Can prices get any lower? YES ! By another 50 % for apartments anyway. Smart first time buyers will not pay more than 140,000 for 2 bed apt or 70,000 for a one bed apt anywhere in Ireland. They were not built with gold in the walls. Prices in other rural towns will obviously be a lot less than this. The big question is when will sellers realise this …

  2. Nicholas Shortt at 9:20 pm

    yes it seems most people have sense, more than our wbankers and politicians, property prices will fall , just hold off any buyer as i am .
    regards Nick.

  3. Claire at 11:28 am

    The receivership auction is being joint managed by Space Property Consultants in Dublin and Allsop Property Consultants in the UK.

    Space Property Consultants have information about the auction on their website: http://www.space4u.ie/auction.aspx and you can also register your interest here – Hope this helps!

  4. Andrew at 7:51 pm

    It’s great to see some of the more enlightened individuals post their comments here. In the age of internet, twitter and all manner of internet news and blogging sites being available to anyone with a computer it’s not difficult to see through the hype coming from certain quarters. I picked up a Sherry Fitzgerald catalogue of nationwide property listings the other day and the first page introduction from Mark Fitzgerald, the chairman, stated the following…
    “Are the clouds beginning to lift? The answer to that must be a qualified “Yes”.
    And the reason for this qualified Yes you ask?? According to Mark Fitz our exporters have become more competitve! Well isn’t that just great news!! No mention of the IMF taking hold of our economy because we were so inept at looking after it ourselves. No mention of the increasing interest rates being foisted upon us by the banks and the ECB. No mention of the Universal Social Charge and and inceasingly smaller pay packets to pay for the gross stupidity and negligence of a corrupt cabal of politicians and bankers. Break out the Moet lads… our exporters are more competitve!! The delusion that people are still willing to pay big bucks for a cramped terraced house in Dublin is well and truly over. An estate agent recently told me that the market for properties above 300k is dead in the water and that sales of properties below 300k are slow.
    So… don’t be cajoled, hoodwinked or bullied into parting with too much cash. It’s a buyers market and estate agents know that. They don’t like but tough, they’ve had it easy for the last 15 years… now it’s our turn to play the market!

  5. paul at 7:08 pm

    Absolutely prices can and will go lower than where they are currently at, still way overpriced, at least another 30-40% to go till they get to realistic levels.

    I want the catalogue, anyone know where to get one from?

  6. John griffin at 11:43 pm

    You can register for catalog here

    http://www.space4u.ie/register_auction.aspx

  7. Ally McC at 7:09 pm

    I can’t buy a house until Bertie and Biffo give me me cashback.

  8. james at 6:32 pm

    we pulled out of a sale last Sept when the crazy bent government bailed the fraudulent bank for 50 odd BILLION yes BILLION!!!! how many tax payers are there in Ireland? where is the money going to come from.. NOT the Bank thats for certain, No the home owners.. so watch for big price drops over the next five to ten years. The party is well and truly over…. except for the bwankers..
    The UK as well where the same thing is happening, right before many closed eyes….

  9. justine at 5:16 pm

    more houses and land being sold off to ‘tourist investors’ who have no loyalties or connections to those who may have lost their jobs businesses and now their homes. Great day to be a street seller selling hotdogs outside the shelbourne.

  10. Fionnuala at 4:15 pm

    Cld someone let me know how I can get my hands on a catalogue, pls??

  11. Dannyboy at 3:45 pm

    If the average industrial wage is now €31,000 per annum, & 10year interest rates are at 10% before any of the ECB raises, and it costs over €1000 per month to borrow €100k;

    then these prices are not ‘receivership’ prices, these are ‘normal’ prices.

    Get used to it, this is the future.
    Avg house price will be €90k max as standard.

  12. aine at 3:33 pm

    you can request a brochure from Allsops – the auction is on April 15 at the Shelbourne Hotel. The catologue is available on line from March 5

  13. Lynne Kennedy at 2:31 pm

    Register for a catalogue at http://www.allsop.co.uk

  14. Grace at 2:22 pm

    Yes,I really believe that Property Prices can drop even more.There is no sign of life in the market and there doesn’t appear to be any sisn of anything happening in the near future.I believe that the situation will get even worse before it gets better.That is going to take some time.Very few people can get Loans from the Banks and the minority who can,won’t purchase in this market.People are afraid that they will pay too much and that the market will drop even further.It’s a catch 22.

  15. corrman at 2:14 pm

    Why is there no Database that provides the actual prices that property sold for in Ireland, as there is in the UK. Why the secrecy?
    Until there is one buyers will continue to be seduced into paying over the top for alleged ‘Bargains’.
    A someone who is interested in having a property in Ireland, I would not buy any ‘Bargain’ until there
    is Transparency.

  16. joe at 2:11 pm

    hi can anybody tell where i can obtain a catalogue of properties on offer, thanks

  17. James at 2:09 pm

    I agree with Stephen. We urgently need a national property register which can be easily accessed online.
    Unfortunately the Data Protection Commissioner’s strongly held view is that this constitutes personal information.

    We will never recover as a country unless we confront the mandarins and their strongly held views.

  18. Paddy Realistic at 1:53 pm

    As the ECB moves to control inflation in Germany and the banks rebuild cash reserves interest rates can only go one way, and that is up. This together with the existing overpricing of Irish property and the financial blood being drained from Irish consumers will produce just one result; significantly reduced house prices. Do not buy now; wait till a 3-bed semi-D in an average Dublin suburb sells for well south of €100k, then buy if you wish.

  19. Ciaran at 1:45 pm

    I agree with both Stephen and Andrew but would add another factor driving prices down is increasing absence of first time buyers. The people who would have traditionally filled this role have largely fallen to emigration or unemployment.

  20. Seanie at 1:45 pm

    Great value, if the guide prices are realistic. Great to see so many bear doomsayers, reciprocating the bull sentiment during the boom! As Buffet says when there’s fear on the streets, it time to buy!!! A great opportunity, hopefully a first timer will benefit and enjoy getting their feet on the property ladder and the security of having the title and deeds of their own asset.

    History teaches us alot about the value of property as an assett. Unfortunately, in the absence of funding, due to the solvency of the banks, its not possible to establish the appropriate value of property in this country at present. But as night follows day, it will come around.

  21. kieron at 1:43 pm

    Where do I order my auction catalogue from ??

  22. Emma at 1:40 pm

    Without having seen the catalogue, I’m pretty sure that those prices are not going to be realistic of final sale prices. An apt in Temple Bar for €80k? The place will sell but surely for more than that.

    I just hope that the auction prices aren’t going back to the ‘bad’ old days of needing to whack on 25-35% (depending on agent) to the guide price… A low reserve it might be, but it might not be realistic.

  23. Rob at 1:17 pm

    It is inevitable given the:level of negative equity in the market;ability of banks to lend;economic activity;the prices will fall

  24. Shona at 1:10 pm

    Agree with Stephen: until Ireland has an accurate database of prices at which property sold the market will remain stagnant as buyers and sellers are unable to assess what price is realistic.

    Would it be better for banks to renogotiate mortgage amounts with individuals based on payments already made rather than forcing a distresed property sale?

  25. Billy at 1:10 pm

    Buyers should remember one thing, if you can get 1k per month in rent, the property is worth 1.6k.
    If you can get E500 per month, it is worth 80k.
    Forget what it was once worth. Forget everything except the above calculation and you can’t go wrong.

  26. Alec at 1:07 pm

    Well a great start with this comment ‘ We are quoting low prices to attract buyers from overseas ‘. When people is this country cant afford to buy with the prices. What is their aim but to get buyers from overseas. that sort of think is the problem with this country now that people are more concerned about money than the Irish people. Why aren’t they pushing these offers towards the Irish people???
    This country has become a laughing stock outside our shores and isnt going to chnage with level of thinking.
    Sure i ended up getting more of mortgage late last year than i was offered in the celtic tiger.
    As long as corruption is as common as it is in this country we are going nowhere. As long as politicians are only concerned about themselves and their votes what hope do we have. They should be gauranteed nothing until they have proven they have done a good job the same as the average person.

  27. Stephen at 1:03 pm

    Its refreshing to see an auction where an Estate Agent is quoting guides below what the properties will probably sell for. This can only be a good thing.

    I think properties in the major urban areas like Dublin, Cork and Galway are rattling along the bottom already. When I say this I am refering to what properties are actually selling for rather than the unrealistic Guide Prices on property websites.

    Ireland is crying out for transparency on Property Prices. The sooner we get a national property price data base, with acutal sale prices, up and running the better. Transparency on property prices is the only way forward.

  28. Andrew at 12:57 pm

    With the ECB poised to increase interest rates over the coming 12 months it would strongly suggest that the prices can only go one way… and that’s down! Three major factors influencing the driving down of prices are the following…
    1. The fact that banks aren’t lending the stupid amounts of money needed to buy a home during the Celtic Tiger years. A colleague was recently offered a mortgage of three times his salary, a hark back to days of old when banks were seen as bastions of conservative lending.
    2. A glut of unsold properties on the market will force down prices. The number of ‘ghost’ estates in Ireland is truly staggering with many properties unlikely ever to see a tenant.
    3. The economy needs to return to the highs we saw during the boom time for property to realise the initial outlay by developers/builders and bankers but this is unlikely to happen due to a number of reasons. Our economy is shackled by the enormous burden of debt our government have saddled us with. If our so called European ‘partners’ can treat us with the disdain a 6% interest rate infers we are being punished for the errors of our ways during the good times, an error largely of investors doing.
    There are many other reasons why property prices must come down to a more sensible level and I believe that in time they will. However, that’s cold comfort to those who bought at the peak and are now struggling with mortgage repayments and the threat of further increases in the ECB.

  29. Austin Henry at 12:56 pm

    All I want to know is where I can get a catalogue.

  30. Greg Stevenson at 12:50 pm

    “With what’s on offer it isn’t surprising that there has been more than 1,000 requests for auction catalogues already.”

    I’m sure that number would be higher if you were to publish a link on where to request these catalogues

  31. Robert at 12:41 pm

    Just as absolute zero is lowest possible temperature so to are current market prices the lowest possible prices. It is a law of nature.

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