By all accounts, Tuesday saw another successful auction held by AllsopSpace. The new format has moved out of the high-profile and heavily-disrupted Shelbourne hotel, and into the vast space of the RDS. This is not so much due to the volume of interest but the regular protests outside the Shelbourne Hotel that disrupted the last few auctions. The RDS by comparison is far more secure, although Allsop have added to the barrier to entry with a new €2,000 deposit for anyone wishing to attend. This is a real shame as it takes the opportunity away from genuinely interested bystanders and property students from attending a real auction. I suppose they will just have to watch online in future.
Another Successful Allsop Auction?
According to the press and Allsop’s own headlines, this was another successful sale. However, we noticed a slight drop in the percentage sold, their lowest ever this year at 80%, compared to usually over 90% in the last 4 auctions. This may reflect there was a higher number of larger commercial units in this sale and the demand may not have been present to beat over-priced reserves.
Our Pick of The Results
Last week we analysed a number of auction lots that we thought were good buys. Lets see what sold and for what prices:
Northside Small Investments
We like the look of this 1 bed apartment next to the IFSC and said it was a bargain at it’s reserve of €120,000. Well some clever investor snapped it up at that reserve, netting him an instant gross yield of 8-9%. Assuming there are no problems with the apartment, the tenant or the block, this looks like a great deal.
3 Bed Townhouse in Royal Canal Park, Ashtown, D15
We said this townhouse should exceed it’s asking and achieve somewhere between €175,000 and €225,000. It bid well and got to €202,500. With a tenant already in place, this will be a good earner for the new owner, at about 6-7% gross yield, but not quite as attractive as the first lot.
2 Bed Penthouse in Lucan, Co Dublin
The last of the northside three, this 2 bed penthouse had a reserve of €135,000 and achieved an excellent €170,000. This apartment didn’t have a tenant so if this was an investor buy, he has to get a good rent of €1,400 to achieve a decent yield on this.
Southside Small Investments
2 Bed Apartment in Kilmainham, Dublin 8
This two bed apartment in central Dublin 8 failed to excite enough interest to achieve it’s reserve of €200,000 and remains unsold. This might be location or perhaps there is a problem with the block, it seems like a good rental investment if it was a clean buy.
2 Bed Apartment in Dublin 4
This other 2 bed in South Dublin shared the same fate. Although an excellent location, opposite St. Vincent’s Hospital and perfect for renting out to medical students and professionals, the €325,000 – €350,000 reserve range looked a little pricey for what it is. Remains unsold.
2 Bed End-of-Terrace in Milltown, Dublin 6
Finally one that did get sold. This nice little starter home or prime investment just achieved the upper end of it’s reserve, selling at €375,000. This might have attracted bold first time buyers but as they’ve made it harder and riskier to bid at auction, this is probably a delighted investor who is going to get €1,500 a month rent in the near future.
Now for the big boys. We highlighted two lots in the €1 million range that may suit the wealthy investor looking for a residential investment.
155 – 156 Capel Street, Dublin 1
First this block of 7 let apartments and a vacant ground floor retail unit was up at a reserve of €950,000 – €1,000,000. It received very strong interest and finally went for €1,425,000 – over 30% above it’s upper reserve. As we said last week, this lot had huge potential upside. If you can find a good tenant for the retail unit, there is the chance to add 30% to the overall income immediately.
1, 2 & 3 Charleville, Church Road, Ballybrack
Less good news from this block of 3 large townhouses in prime South Co. Dublin. Lot 7 failed to sell. As we supposed last week, this might be because there is a title or construction issue with these houses that prevents them from being sold separately.