'Distressed properties' auction to feature D4 house for €400,000

A massive auction of "distressed" properties is to be held next month.

Between 80 and 90 properties from Dublin, Wexford, Cork, Portlaoise and Galway will go under the hammer for massively reduced prices.

On the list of properties is a house in Dublin 4 which is expected to be sold for €400,000 and a two-bed apartment in Portlaoise for €35,000.

Economist with the ESRI, David Duffy said auctions such as this may have a knock-on effect on house prices generally.

House prices are already down between 40% and 45% from peak prices. David Duffy said: "The expectation is that you're going to see further falls again this year.

"What (the auction) might bring about is some revision down in the asking price that people are setting, given they are seen properties being sold at a very significantly reduced price."