THE ROOM was packed and outside on the footpath was a scene reminiscent of the boom – men in suits talking animatedly into mobile phones while stuffing brochures into their pockets. The occasion: a rare auction of houses yesterday in Lisney’s headquarters on St Stephen’s Green. The first, a 1930s semi in Blackrock needing work, the second a quaint bungalow in Greystones, also needing refurbishment. Both houses were being sold by executors, an added incentive to buyers looking for a bargain.
Neither sold low. Two bidders chased 22 Glenvar Park, off Cross Avenue, to a final price of €975,000 (the AMV was €900,000), while three were after Sunnyside, The Burnaby, Greystones, pushing the final price to €910,000 – €260,000 over the AMV. “Good results,” said director John O’Sullivan. “We’re actually very busy with offers coming in this month. And it was the same last month.”
While some sectors of the market continue to stagnate – newbuild apartments in particular – there’s growing confidence among buyers of mid-market second hand homes priced from €400,000 to €1 million. The market got an unexpected boost on Tuesday when Standard Poor announced that Irish property appears to have over-corrected and could now be undervalued. In a report on the European housing market SP said Ireland’s ongoing market correction “seems overdone”, and estimated prices were undervalued by about 12 per cent.
The agency said Irish house prices, which recorded an 18.5 per cent decline in 2009, were showing a marked difference to other European markets, which have displayed signs of pulling out of the recent price correction.
“Fundamentals driving the Irish market have nevertheless improved dramatically. The market appears undervalued today compared with long-term historical averages,” the report said. “There was a lot of talk about Standard Poor today,” said John O’Sullivan. “People want to believe it.”
The mild feelgood factor isn’t confined to southside houses. On Tuesday, a 68-acre farm in North Co Dublin sold for €1.26 million at auction through Coonan Real Estate Alliance. Here, too, three bidders chased the property which was viewed by local farmers rather than property developers.
