The full extent of the Irish property crash will become apparent in April when a British bank sells off bargain properties at the country’s first Distress Auction.
Lloyds Bank has commissioned auction house experts Allsop to sell off its range of distressed properties in the Shelbourne Hotel in the first of four such fire sales.
The portfolio includes a central Dublin apartment previously listed at €900,000 but now with a guide price of just €220,000.
Everything from Georgian flats in Dublin to prestige country estates will be available at the Distress Auction – but nobody really knows what anything is worth anymore after the collapse of the Celtic Tiger.
Up to 80 houses and apartments will be on sale in April including properties from receivers, banks and property owners.
The catalogue includes tenanted flats in the stockbroker belts of Ballsbridge and Sandymount and every property will sell with a disclosed maximum price whereby a deal is guaranteed once that figure is met.
Some of the properties are expected to sell for less than 50% of their boom time value.
“Many private sellers have been obstinately asking prices that are clearly historic and over-optimistic,” Allsop founder Stephen McCarthy told the Irish Independent.
“It’s been very difficult to say what a property is actually worth in Ireland today.”
Allsop partner Gary Murphy will conduct the first auction and claimed: “There is a tremendous business opportunity in Ireland.
“We want bidders to appreciate that if they can afford to bid the disclosed maximum then, provided the bidding does not go higher, the hammer will fall and the property will be theirs. It’s that transparent.”