PRE-BUDGET nerves and continued uncertainty in the property market were to blame for just three lots selling in the first property auction in the city this Wednesday in the Strand Hotel.
In the first regional auction held by the Real Estate property alliance, over 50 people attended the sale of properties put up by receivers and private owners.
Seven properties of the 11 on offer had to be withdrawn for failing to meet the reserves, with one of those withdrawn prior to the sale due to a technical issue regarding a map.
The quick-fire sale of properties in Limerick, Cork, Longford, Galway and Waterford lasted less than an hour, after bids failed to meet reserves, and in some cases received no bids at all.
However, auctioneers are nonetheless anticipating an 82% success rate from the day, with numerous people expressing interests in the properties after the auction. It is expected that six lots may sell before this weekend.
“It’s a challenging time to say the least. With the Budget today and continued uncertainty in the market, people are waiting to buy in the new year, as there’s a feeling that there’s further value to come with many more properties due to be off-loaded. There’s over 50,000 properties which will have to be disposed of, so there will be lots more of these types of auctions,” said Philip Farrell, director of the Real Estate Alliance.
While he said the initial take-up was disappointing, it was not too surprising. “We have to take it as we find it at the moment,” he added.
A two-bed apartment in Jutland Hall, Steamboat Quay, sold after meeting its reserve of €35,000.
A four-bedroomed house in Cathedral Villas, Garryowen Road, sold for €27,000, just €2,000 over its reserve.
A three-bedroomed house in Ballingarry, county Limerick, failed to meet its reserve of €85,000, after bids reached just €70,000. An 11 acre residential development site in Waterford city, with a reserve of €330,000, was also withdrawn after there was just one bid of €200,000.
“This is ready to go with full planning permission for 111 houses,” coaxed auctioneer James Lee. “It has undoubted future development potential for when things pick up again, which can’t be too far away hopefully.”
But buyers didn’t seem convinced.
A four-bed house on the Old Cratloe Road also failed to meet its reserve of €88,000, with bids rising to just €65,000.
The most intense bidding on the day was for a three-bedroomed semi-detached house in Wilton, Cork, which fetched €185,000, surpassing its reserve by €35,000. A further auction is scheduled for February 27 in Dublin.
Meanwhile, a number of other Limerick lots went under the hammer at the last Allsop Space auction of the year in Dublin.
Four apartments in Thomond student village on the Old Cratloe Road met their reserve of €100,000. An office in Annacotty industrial estate, which had a reserve of €70,000, is still available. A two-bed ground-floor apartment in the seaside town of Kilkee sold for €36,000, €6,000 over its reserve. Of the 109 lots, 19 were not sold and 75 properties sold for over their reserves. Over €13.7m worth of property was sold on the day.
The next Allsop auction will again he held in the Shelbourne hotel in Dublin on March 1, 2013.