Will today’s receivership auction establish a new floor for the property market?

Will today’s receivership auction establish a new floor for the property market?

Receivership AuctionUp to 1,000 people are expected to attend today’s auction of distressed properties, the largest of its kind seen in Ireland. Beginning at noon in the Shelbourne hotel 80 lots will go under the hammer the majority of which are being sold by receivers and include homes in Dublin, Wicklow and Galway as well as small commercial buildings and shops. The bulk of lots are priced between €35,000 and €150,000, the lowest priced property is a site in Wicklow town with a reserve of €20,000 while the most expensive is the Dublin 4 mews which is estimated at €600,000.

The auction, which is joint organised by Allsop, a UK auction house that specialises in distress sales, and its Dublin affiliate, Space, hopes the auction will inject new life into the moribund property market, which has been paralysed by fear that house prices, which are already down 45% from their peak, may have still further to drop. “It will restore confidence in the market. That day has to come to Ireland,” said Gary Murphy, a partner at Allsop. With todays 80 lots “you will soon find out if the market is strong or weak. We hope this will establish the floor,” he added.

Have Your Say:

  • Will today’s receivership auction establish a new floor for the property market?
There are 9 comments for this article
  1. bpkiely at 12:19 am

    For the people who “bought” on Bride Street, they clearly have not done their homework, the apartment complex is subject to a legal action. (lis pendens) none of the apartments can be sold until this is resolved, complex itself is incomplete and is in serious disrepair.

    Was told that the people who bought no 28 entered the building last night only 4 hours after the auction ended, with no key or permission and proceeded to wake up the current residents to tell them that this place is mine now and I am here to look at my property, the nerve, as all of these properties were sold for 3 to 4 times the cost that this buyer “bought” them for, all they wanted to know was how much the people in no.28 pay for rent! country gombeens! They were told about the legal action and just laughed it off, very sad for all involved.

  2. RedWino at 10:07 pm

    Well, I was at the Space. Allsop affair today.

    The poor ordinary buyer who was hoping to buy a home at an affordable price was outbid every time, or almost every time, by investors.

    There were plenty of terraced, semi-Ds, detached properties, as well as apartments, retail premises and sites up for auction.

    What people need to bear in mind with these liquidator sales is that many of the properties do not have home bonds, and may have legal cases against the builders pending judgement.

    If you’re cash rich and can afford the odd bad buy, then this type of auction is ideal. If you’re hoping to get your foot on the property ladder with a mortgage – BEWARE!

    The sad thing is that in the the vast majority of cases the bidding went too high, too fast. It was a greatly hyped up exercise with a fantastic PR machine behind it. It reminded me of the bad old days when people were duped into camping out all night for fear of not getting the property they wanted. God bless the Irish love affair for property ownership. We’ll keep lots of people rich while we slave away for life paying off over-priced properties.

    Do we ever learn our lesson from the past? Seems not.so if that continues, the market will never reach normalization.

  3. Audi at 8:24 pm

    I really feel empathy for those whose homes are being liquidated, no matter how much the property goes under the hammer for, they are still stuck with paying their original mortgage – except now they don’t have a home.

    Why can’t Ireland do what they do in America and just hand back the keys – the banks already have their bail out funds so in effect they are getting their loans back in double,

  4. kashif mahmood at 3:46 pm

    honestly it will be waste of time for more innocent people

  5. Mick at 3:37 pm

    I don’t think this auction has any influence. The banks are the problem, they don’t want to give morgages or loans. There are enough people who can afford a morgage but getting it is a different story.

  6. james at 2:35 pm

    not on yer nellie…. needs to drop a lot further, Ireland is bancrupt with no real manufacturing industry to speak of.. get real its a place for fun, drinking the black stuff not trying to rip each other off with house prices..

  7. Damien at 1:39 pm

    No because more than likely the majority of these sales are geared towards investor/buy to let people.. 1000 people buying 80 lots…. it is a closed market… and they are mental if they think that they will get a good return on investment!!

    It would be more interesting to see if someone could survey the 1000 buyers as to their intensions for the properties… and whether or not they are cash buyers or investors…. I would suggest there is not a lot of ordinary people in that room looking for a home…
    The floor in property is never going to be hit because of ghost estates and NAMA so 10 to 15 years before this market has worked itself out….

  8. zz at 11:04 am

    I doubt the auction today will have any bearing on the market as a whole. The auctioneers have done a great job at marketing the sale, but really if apartments are what you want, then maybe it will set the pricing in that particular market. On a whole though I doubt this will have any bearing on sales in the semi or detached housing markets.

  9. Stephen at 10:57 am

    have to say that I am really sick of the national media constantly talking about Discount and Cut Price Properties for Sale.
    Discount and Cut Price means that the purchaser will get the property for less than the market value. However the market value is what someone is willing to pay at anyone particular time. I doubt if Allsops are going to agree a price and then discount it.

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