Still some interest in buying property

THE auction of some 80 repossessed properties in Dublin yesterday was the first auction of its kind for some time. It, therefore, afforded a real indication of current property values.

Although there was room for over 800 people in the room, interest in the sale was so great it had to be suspended for a time over Garda concerns due to overcrowding.

It has been widely accepted that property prices have dropped by 50% for their peak, but this has been largely supposition, because so little property has actually been sold since the collapse.

The properties being sold ranged from homes to small commercial buildings and shops. A striking feature of the sale was the extent to which bidding exceeded the reserves in most cases. For instance, a pharmacy in Roscrea, Co Tipperary, which had a reserve of €131,000, was sold for €336,000. Two apartments in Portlaoise, which had reserves of €35,000 each, went for more than €60,000 each. The leasehold on a pharmacy in the Mahon Point Shopping Centre in Cork, on the other hand, was sold for €130,000 though it had a reserve of €140,000.

Interest in the auction seems to suggest there is still an attraction to purchasing property, but this is probably being hampered by the banking crisis.