So-called “market -value” to my mind is determined by supply and demand in any given area. Simply put, a property is worth what a buyer is willing to pay TODAY. In light of that, I am watching the forthcoming auction in Donegal with interest. Not only to see the actual price achieved but also the strategy any new owner will employ to drive sales…
‘€200,000’ flats put on market for just €11,700
By Cronan Scanlon and Donal Buckley
Friday October 22 2010
THE cheapest apartments in the country are about to go for auction in Donegal for only €11,700 each — but you will need to buy the complete block of 47 units for around €550,000.
The price per apartment works out at almost one third cheaper than the next cheapest apartments in the country which are for sale in Redbarn, Co Cork, for €40,000 — but they can be bought one at a time. Meanwhile, the cheapest apartments in Dublin have just been sold for an effective price of only €63,000 each. Developed by former hunger striker Tom McFeely and his partner Larry O’Mahony, the Dublin apartments are located at Blakestown Road, Dublin 15.
Sales agents HT Meagher O’Reilly (HTMOR), acting on behalf of receiver Martin Ferris, sold the 30 flats in one lot for €1,895,000 or €63,000 for each apartment. They comprised three one-bedroom apartments, three three-bedroom apartments and 24 two-bedroom apartments on a 1.25 acre site. Andrew Long, of HTMOR, said he received 10 offers. “All parties made cash offers and did not require bank funding. We are now seeking more block sales as we believe we have a number of parties still interested in these types of purchases,” he added.
The Donegal apartments, at Navenny Place, Trusk Road, Ballybofey, Co Donegal, are only one seventh the prices being sought for other completed two bedroom apartments in Ballybofey which are asking around €95,000.
However, the Navenny flats, don’t have bathrooms or kitchens and some need their walls plastered. A lift also needs to be installed in the block.
Developer Navenny Developments had hoped to gross more than €9m from the original sale as similar apartments in Ballybofey were selling for €200,000 at the market peak. Now the company cannot repay its loans to Ulster Bank.
The auction is in Jackson’s Hotel, Ballybofey, on November 24.
– Cronan Scanlon and Donal Buckley