Distressed property auctions are fast becoming the norm in Ireland – the only section of the real estate business to show any signs of recovery.
As Allsops prepare for another auction of distressed properties in Dublin’s Shelbourne Hotel, Cork is preparing for its first such discount sale.
Up to $15million worth of property is expected to be sold at knock down prices in the country’s second city this week.
The last Dublin auction generated over $25million worth of business and the auctioneer handling the Cork sales on Friday expects business to be brisk.
Noel Forde confirmed to the Irish Independent that he has been inundated with offers from owners desperate to sell and has had to limit numbers for this sale with a further auction now planned for September.
All properties in the Cork auction are privately owned with vendors prepared to accept up to 70 per cent of their value during the height of the Celtic Tiger boom.
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Included on the list of properties is a 1.7-acre site in Borris-on-Ossory in Laois, located in an area zoned for urban development and adjacent to the railway line. Because there is no planning permission on the site, it is on offer for €15,000.
“You’d just about buy a top-notch second-hand car for €15,000 four years ago,” claimed Forde.
“And that was just about the deposit required for a site let alone its actual price.
“We have a total of 67 properties in the auction on Friday and, back in 2006/2007, they would probably have a guideline value of about €20m. Now, they are valued at around €10m.”
Forde believes Friday’s auction will be a success. He added: “There is money out there and people are waiting for the right time to buy.”
Properties from Cork, Kerry, Tipperary, Limerick, Clare and Waterford are listed for sale on Friday.
They include:
- Three-bedroom holiday homes in west Clare on offer for €80,000 compared to their €200,000 asking price in 2006/2007.
- A four-bedroom detached bungalow in Newmarket, north Cork, on offer for €145,000, which was priced at €300,000 five years ago.
- A bungalow in Churchtown in north Cork, on offer for €110,000. Identical properties previously sold for €225,000.
- Three Ardroom sites, all with planning permission, have a guide of €93,000 each - a price drop of 69pc.
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