Allsop Announce First Irish Auction on 15th April at the Shelbourne Hotel, Dublin
To access the online catalogue please go to www.allsopspace.ie
In a fresh approach to buying and selling property, Ireland’s first distressed multi lot property auction will take place on 15th April at the Shelbourne Hotel, Dublin.
The auction will be held by Allsop and Space, an established real estate consultancy in Dublin. Their aim is to deliver to buyers a transparent forum within which bidders determine the value of property and are not dictated to by sellers who are clinging on to over optimistic and historic price aspirations.
Space approached Allsop last year with the objective of taking a renewed approach to the stagnation in the Irish property market. The collaboration combines Spaces’ knowledge and understanding of the Irish market with Allsop’s expertise and resources for holding successful multi lot property auctions.
The sale will comprise of over 80 lots from across the country including Dublin, the Midlands, South and South-East on behalf of a variety of receivers. All properties are distressed and will comprise predominantly residential stock but also some commercial and mixed use buildings. There is a combination of vacant and let property to appeal to all types of buyers.
Some of the properties on offer will have been offered by private treaty at much higher prices since the peak. For example, a modern three bedroom, two bathroom apartment in a prestigious central Dublin block was formerly on the market for over €900,000 (around £760,000). The maximum disclosed reserve is €220,000 (around £200,000).
"Nobody likes to buy assets in a market that they perceive to be uncertain" says Stephen McCarthy of Space. "This has been a real obstacle to renewed activity. And it's been compounded by the fact that many private sellers have been obstinately asking prices that are clearly historic and over optimistic. It's been very difficult to say what a property is actually worth in Ireland today.
We're now offering buyers a refreshing opportunity to set prices themselves. The room will determine value through competitive bidding, which subsequently could offer crucial benchmarking to the market to establish where property values really are at the moment"
Bidders are anticipated to range from first time buyers, who have been unwilling to make their first purchase in an uncertain market, to seasoned investors seeking opportunity from rental returns.
Historically, auctions have generally been confined to small or single lot sales. Due to the rise in popularity in websites such as EBay and the real need for change in the Irish property market, the auction route is becoming an increasingly popular method of sale. The auctioneers expect strong interest from both Irish and overseas buyers who are keen to see movement with competitively priced lots acting as catalysts.
In a departure from the UK practice of quoting guide price ranges for each lot prior to auction (indicating the band of figures within which the vendor is likely to set the reserve price), the Irish sale will publish a maximum reserve price. The ultimate figure will not exceed, and may be lower than, the amount quoted.
"It delivers a very clear message to newcomer buyers" says Gary Murphy, partner and auctioneer at Allsop. "We want bidders to appreciate immediately that, if they can afford to bid the disclosed maximum, then, provided of course that the bidding does not go higher, the hammer will fall and the property will be theirs. It's that transparent".
If successful, Allsop Space will bring further distressed stock to market at increasingly larger auction sales in Dublin with a further two auctions planned for this year, dates to be confirmed.
"It's been an exciting project to develop" says Murphy. "If the sale goes as well as we hope, we are confident that many of the other banks and receivers to whom we've been speaking, will also want to play a large part in future sales."
The catalogue will be available in print and on line from Saturday 5 March.
Allsop's Murphy said "We shall be marketing to both Irish and UK buyers. The launch of the Dublin catalogue will coincide with the publication of our 29 and 31 March UK brochure, from which Ireland will also be promoted. Our clients will benefit from Allsop’s online database of 220,000 registered buyers".
Buyers will be able to bid on the day from the auction room itself or by phone, by proxy or by internet. All properties will be available for viewing prior to auction, those bidding must have their finance in place, with a 10% deposit payable on the day.
Further information about the auction is available from www.allsopspace.ie by phone on 01 676 2033.
Notes to editor
Ireland's Economic Background
• The Irish property boom ran from 2000 to 2006 and was largely due to intense speculative construction, rapidly rising prices and bank lending of unprecedented generosity.
• Prices stabilised in 2007 and the bubble burst during 2008. By Q2 2010, house prices had fallen by up to 50% from Q2 2007, and the number of housing loans approved fell by 73%. The sharp fall in domestic and commercial property prices contributed to the Irish banking crisis.
• From 2000, approximately 75,000 housing units were built every year (Dept of Environment, Heritage and Local Government). 230,000 are vacant. 115,000 of these may be holiday homes.
About Allsop LLP
Allsop is the leading residential and commercial property auction house in the UK. The residential sales total for the 2010 calendar year is currently £335m and 88% from 2089 lots. The commercial total stands at £385m with 83% sold. Total raised £720m.
In 2010, Allsop was voted Residential Auctioneer of the Year by a panel of its peers.
Allsop has also formed a joint venture in Dublin with chartered surveyors, HWBC. The new vehicle, named HWBC Allsop, is now delivering fixed charge receivership advice to banks exposed to the Irish property market.
In Ireland, Allsop hopes to replicate its hugely successful UK business model. The firm's rapidly expanding UK insolvency team now advises an impressive list of bank clients and, where appropriate, instructs the firm's commercial and residential sales teams in the disposal of distressed property assets.
Space is a leading property consultancy offering sales, professional and management services from its central Dublin offices.
For further information and to access the online catalogue please go to www.allsopspace.ie or contact us +353 (0)1 676 2033 for our Irish office or +44 (0)20 7494 3686 for our UK office.
If you are a journalist and would like to arrange an interview or for further information please contact Jennifer Mortimer
+44 (0)20 7543 6728
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