The Allsop Space auction in the Shelbourne hotel in Dublin concluded just before 3pm today. There were originally 74 properties set to come under the hammer. Seven were withdrawn and on the day, a further 11 didn’t sell because they didn’t reach their minimum reserves. At the end of the auction it was announced that lots 10 and 39 sold after the auction. The total of the prices achieved was €9,534,500 which compares with the maximum reserves for the sold properties of €7,046,500 and means that the average sold price was 35.3% over the maximum reserve.
Here are the flash results:
The auction was conducted by Gary Murphy who we know from the first two auctions. His colleague Chris Berryman took over for the last leg of the auction, so if Gary falls underneath a bus, we will at least have a familiar face to provide continuity at future auctions (by the way the next auction is scheduled for November 30th, 2011)
The first impression on here was that the auction was a success with an 83% sales rate (if you add the 2 properties that sold after auction that would bring to 58 the number of properties sold out of 67, or 87% success rate). Most of the unsold property came pretty close to the reserve with the exception of a property on Finglas Road which went unsold with a highest bid of €185,000 compared to a maximum reserve of €230,000.
This auction was a departure from the previous two in that there was apparently a considerable proportion of non-distressed property up for grabs.
There will be more detail analysis later and hopefully some comments from the Allsop Space auction team.
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Is the 35% a bit too conditional (i.e. given successful sale the…)? I think it’s more reflective to adjust for those that didn’t sell – either using highest bid or max reserve. This would result in 26%/27% above max reserve.
Any idea what percentage of the sale price goes to the seller?
The November 30th auction will be a “jumbo” one with approximately 150 lots.
some people expect continued downward pressure on prices
“We still expect continued high writedowns in the second half of 2011. We think we have to move into 2012 before the property market might have bottomed out.”
http://www.bloomberg.com/news/2011-09-22/danske-bank-says-irish-housing-market-will-deteriorate-into-2012.html
I think this auction would be considered a success again, although with the increasing number of no sales and withdrawn properties I hope we aren’t reaching auction fatigue already.
Similar analysis as last time using IPW database shows that on average the sales prices today were about 67% down from peak prices.
http://www.irishpropertywatch.com/viewPost.php?Post_ID=178
Largest fall from peak was Lot 52, 40 Mc, Curtain Street, Gorey, Co. Wicklow a 3 bed house that sold for €55,000 and had an asking price of €298,000 in March 2008. A fall of 81% from peak!
@Dreaded, super work, well done!
Can we call it a fall? Seen as anyone can ask anything.
Not a lot of coverage of it, but there was a protest by Two distressed homeowner/anti-repossession groups outside the auction. Perhaps this had an effect on the properties which were unsold?
I think this could be the beginnings of something.
@OMF, thanks for that. The Independent did cover the protest also http://www.independent.ie/national-news/protester-fears-his-own-home-will-be-sold-off-2886401.html.
It was reported in both newspapers that David Hall of the New Beginning group (www.newbeginning.ie) which has provided advice and legal representation to mortgage borrowers, was amongst the protesters and I have asked the group for comment on its participation.
There are a couple of interesting points surrounding this auction. They relate to the financial end of the sales rather than the sales themselves.
The first is a pre auction point. Although all the Irish “mortgage” banks, including our two pillar banks, were asked to provide 50% mortgages to purchasers – all declined. Such a provision, of course, would have increased prices by at least 20% and widened the market which is 100% cash based at present. So much for the spin that our banks are in the market .
The second is the arrival of a few professional “bottom fishing” investors from the UK. Expect this to increase substantially as the word spreads that they are only competing against Irish purchasers with no access to funding.
One thing is certain, we will have no recovery in the property market and more especially in the economy until our banks provide liquidity to homebuyers. Without a properly functioning residential property market there will never be the consumer confidence that is required to ignite growth.
@OMF, What amazes me is that the underwater mortgagors have not yet handed the keys back to the banks en-masse. It will eventually happen, if prices continue to drop, or even if there is no rise from this level. And the only thing that will encourage a rise is the provision of liquidity by the same banks. It may need a room full of keys before the banks realise where their best interest lies.
It’s bad enough to hear the spin “come in and we’ll negotiate” to find that the actuality is that there is no negotiation, just a diktat from the bank, which has to be complied with – or else.
Logic will eventually dawn on those continuing to pay underwater mortgages that it is not in their best interest to continue to do so. The banks and the borrowers no longer have common cause – if they ever had.
The trickle of keys will eventually turn into a flood when the victims complete their exit arrangement plans and turn them into actions.
“The worst that can happen is that it will fall in value by 5 per cent, but over the long term it is a sound investment. Give it 10 years and it will be worth €5 million.” IT.
Still living the dream Waverly Place at 459,000……
@John,
Maybe not.
6,000 sq ft of mediocre Edwardian building, completely stripped/vandalised. Okay, on Shrewsbury Road and the plot is 1.8 acres. But an Advised Minimum Valuation of €15m.
http://www.daft.ie/searchsale.daft?id=618598
€43m knocked off Ireland’s most expensive house
It was Ireland’s most expensive house, sold at the height of the Celtic Tiger boom for an eye-popping €58m, now it’s on sale for just €15m
http://www.guardian.co.uk/business/ireland-business-blog-with-lisa-ocarroll/2011/sep/22/ireland-most-expensive-house-walford
If the view that 500,000 invested today in Irish resi may return 5,000,000 in 10 years was widely held the auction would have been a lot busier.
The implied capital appreciation is not based on any reasonable metric or measurement simply unrealistic given economic growth forecasts unemployment rate level of distress in resi market etc.
“Mortgage arrears rose to new peak of 9% in July”
Its called extend and pretend as wstt has stated no serious attempt has been made to adress the many major challenges facing the irish resi market one of which remains NO CAPITAL
No modern BK laws to allow for mobility upward or downwards
Excess supply and a very large ‘shadow’ inventory.
http://www.irishtimes.com/newspaper/finance/2011/0920/1224304411212.html
[…] still very successful in an international perspective, did see a number of properties not sell – a fuller report is given over on NAMA Wine Lake. Some were very close to their reserve and will probably sell when the dust settles, while it seems […]