Today was another successful day of auctioning property for the team at Allsop Space. The great ballroom of the Shelbourne Hotel in Dublin was packed to capacity, in fact catalogues ran out early in the day & were like gold dust.
At previous auctions we began to see first time buyers and home buyers looking to trade up make an appearence. These buyers were in short supply today and the room was dominated by investors, most likely cash investors. The quality of the auction catalogue and the properties on offer was arguably better than we have seen so far this year. Surprisingly bidding was slow to get started and for the first two hours, properties took double the usual average time of 3.3 minutes to sell – much to the annoyance of auctioneer Gary Murphy who admonished one hesitant bidder by saying “We’re going to get there sir, so you may as well say it”.
The auction got off to a slow but steady start with a two bed appartment in Dublin 2 selling for €168,500, in excess of the stated reserve of €135,000. A house very much in demand was the three bed semi in Killiney, with a max reserve of €95,000. This property attracted competitive bidding and sold for €222,000, it is worth noting that properties such as this made €565,000 in March 2008 and €270,000 in the summer of 2011.
Appartments in the Tannery that failed to sell in the previous auction appeared on the listing again today with a reduced reserve of €75,000. Bidding was more enthusiastic this time around and the appartment made €111,000 under the hammer.
One of the features of the day was the entire ghost estate on the ring of Kerry. Consisting of 14 houses, we predicted that this property would see intense bidding but this was not the case. Bidding was protracted and it took in excess of 15 minutes to achieve a disappointing €235,000. While this might seem a lot in the context of the low reserve price of €50,000, it is very little for 14 completed houses. We understand that this ghost estate did not have bonds and contributions outstanding to the local authority, which would be unusual in this type of circumstance. The new owners will need to put together and execute a site resolution plan in order to make safe the development. We further understand that the town of Castlemaine has a waiting list for social housing of less than 15 applicants, this questions the need or potential use for these houses in this location.
Another highlight on the day was the magnificant Georgian building at 26 Merrion Square, Dublin, at 8,000 sq ft this property needed some upgrading but represented an excellent investment opportunity for the right buyer. The max reserve of €1,000,000 was exceeded by €420,000.
The White Castle in Athy was certainly the most unique property we have seen offered through Allsop Space and while market value was hard to ascertain the successful bidder paid €195,000 to secure this castle.
Todays event saw more protests inside the room than usual. These ranged from rights of way issues to disgruntled owners whose business had been seized by the banks. The auctioneer dealt with these in his usual droll way by pointing out to one protester who argued about a right of access, that the easiest resolution would be for that protester to buy the property!
Bargain of the day might well go to the family home in Rathfarnham which some lucky bidder snapped up for the reserve price of €220,000, well below current market values.
In total 79 properties sold, 8 were withdrawn prior to or during the auction and only 3 failed to sell on the day. Total sales on the day amounted to €11,435,000, the value of sales over the reserve prices amounted to €3,846,850.