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Mass Auctions Here To Stay?

TODAY’S Allsop/Space auction in Dublin’s Shelbourne hotel will be an interesting test of the longevity of the mass auction and whether it’s here to stay or a mere passing fad. Savills Ireland is getting in on the act in September with the promise of around 100 investment properties. with low reserves and prime locations in Dublin.

Not wanting to be left out, auction specialist Merlin Group – better known for its car auctions – announced its move into residential property earlier this week. It is getting properties from banks and says it already has 40 for its first big auction in the Burlington Hotel in Dublin in early autumn.

Allsop/Space might find it hard today to match the drama and impact of their – and the country’s – first – discounted auction back in April, which saw €14.8 million worth of deals struck in just six hours on vastly discounted properties in prime locations.

This time around it has 87 distressed properties around the country with reserves as low as €40,000 on some houses outside the capital.

In Dublin there are a few tantalising propositions including two partially finished architect-designed houses on Killiney Hill Road, Co Dublin with a reserve of €200,000 and a five-bedroom house on Upper Kilmacud Road, Co Dublin with a reserve of €275,000 or a three-bedroom house on Iona Road in Glasnevin with a reserve of €360,000.

The failure of the recent mass auction in west Cork by GMAC Properties – when only two of 64 properties sold at auction – casts a shadow. but Ed Carey, an auctioneer and chairman of the SCSI residential property group says he believes the failure of the Cork auction lay in the fact that the reserves were too high.

“We need to stop focusing on properties being discounted from their peak prices, because peak prices are no longer relevant.”

He says the success of the Allsop and Space auction in April shows there is a demand, and that what is stopping many people for purchasing is the lack of finance “which is some comfort. There is a market for the right property at right price and at the end of the day that’s all people are looking for”.

Report - Irish Times

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