The third Allsop Space auction kicked off to a packed auction room at 10:45 am at the Shelbourne Hotel, Dublin. Despite the lack of media interest leading up to the auction there were queues on the steps of the hotel an hour before the doors were due to open.
Attendance was definitely higher than at the July auction (but lower than the initial frenzied scene we saw in April), despite protesters on the footpath hindering access to the hotel. Today was a very different auction for Allsop Space in that there was a 50/50 split of bank and private sellers. This was evident when investors tried to guage the minimum reserves and found that even €1,000 below the max reserve in one case resulted in no sale. There appeared to be very little between the minimum reserves and the stated maximum reserves, unlike in earlier auctions.
Good news for homebuyers
The big news story for buyers is that homebuyers were formally supported by mortgage lenders to bid for the first time. This means that for the November super auction homebuyers will genuinely be in a position to compete with cash investors.
We tried to select our deal of the day only to realise that there really was none. The prices paid were high – on average 35% in excess of the max reserve. Anything much below the max reserve failed to sell. Galway was well represented and all of the Galway properties sold, in fact, when all the Galway deals were done the room emptied out pretty quickly!
And for Investors
For Investors in the room, the missed opportunity of the day must surely be Lot No. 55 – 456 North Circular Road – 3 stories over basement and arranged in 13 self contained bedsets the property is currently generating €22,800 per annum and this is with only half of the units let. Bidding got to €235,000 but this proved too far below the €265,000 reserve.
All in all it was not the most exciting auction outside of the slight bit of controversy over a right of way issue on Lot 54 – 6 Gardiner Place which was brushed aside coolly by Gary Murphy the Auctioneer who stated ‘We were expecting you Sir’.
There was €9,525,500 in property sold in just over 4 hours excluding any deals done out side of the auction room. That brings Allsop Space’s success to 82% – well done to the team at Allsop Space – another good result. We look forward to the next auction on the 23rd of November which should prove interesting as a lot of the properties not allowed into this auction (legal action against certain lenders) should find their way back into the catalogue.