Crowds Spill Onto Street At Ireland's First Ever Property Fire-Sale

You would think that after the spectacular property crash in Ireland, punters would be wary of investing in houses or apartments again.

But the crowd that turned up at last Friday's "fire-sale" of properties in Dublin was so big, that it spilled out onto the street and had to be suspended for a short time over safety fears.

The lure of a bargain proved too popular -and the auction proved there is still money in the country somewhere.

A total of €15m was spent in the five hours it lasted.

More than 80 properties, ranging from apartments in rural towns to a mews in the fashionable Ballsbridge area of Dublin, were given to the highest bidders.

All but two of the 84 properties were sold.

The auction took place in the fancy Shelbourne Hotel on St Stephen's Green, in a room which had seating for 350 people and standing room for 500.

But such was the interest that crowds spilled out on to the street. Organizers Allsop, a UK auction house, said one lot was sold to a bidder who had been forced to stand on the sidewalk outside the hotel.

They halted proceedings and asked onlookers, who were not serious about bidding, to leave the main auction room.

Proceedings were beamed live to TV screens in the nearby Doheny and Nesbitts pub, a favorite of many politicians and developers, and the site of many deals during the ill-fated boom.

But while dozens watched with giddy interest, no-one there was doing any of the real business.

Most of the homes being auctioned were being sold by receivers or liquidators.

They went for between 50-60% of what their developers would have expected when they were being built at the height of the boom.

The auction included a sprawling three-bedroom penthouse apartment on Chancery Court in the center of Dublin.

When it was released to the market in May 2007 with a price tag of €1.35m, it was completely furnished with a "funky city-pad feel" including marble flooring, a Jacuzzi and spot lighting.

It had large balconies offering views of the city and would have been considered a highly desirable purchase.

But at the auction it was listed with a reserve price of just €230,000.

In the end it sold for €345,000 to an Englishman whose daughter was studying to be a surgeon in Dublin - the student doctor could scarcely conceal her delight at the bargain, according to news reports.

Many properties sold for the reserve price listed, while others went well above the reserve (even if well below the pre-bust prices).

A one bedroom apartment in Temple Bar which had a reserve price of €80,000 was sold for €126,000.

Two adjacent houses in Churchtown on large sites with planning permission went for around €100,000 more than their reserve of €400,000.

A mews house in Ballsbridge with a max reserve price of €600,000 was sold for €550,000 - one auctioneer had valued it just last year even after the bust at €850,000.

One freehold building in Wexford comprising six apartments and retail units, went for €560,000, well above its max reserve of €210,000.

The cheapest house to sell was a three-bedroom in Grange Heights Mullingar which sold for €30,000 (above its reserve).

The sale is expected to set a floor for the Irish property market, giving an idea of what punters are willing to pay, and realtors an idea of what to benchmark property on their books against.

Bargain hunters can keep their checkbooks at the ready - the next fire sale is scheduled for July 6th.