The rain and cold wintery conditions of last Friday afternoon did nothing to discourage the assembled crowd in the Imperial Hotel, in the last of the 2012 series of auctions for leading property firm Property Partners Maxwell Heaslip & Leonard.
With the crowd assembling from 2.30pm, the auction room was full by 3pm, as was the agenda for the afternoon’s proceedings with lots being brought to auction. “Every auction is preceded by a five- to six-week intensive marketing campaign where all lots are heavily exposed to the public through a variety of mediums,” said director Fergal Leonard MIPAV. “We knew that the properties were appealing to buyers for their various attributes and, as always, setting the correct AMV is of paramount importance as it can essentially dictate the level of success on the auction floor.” All open viewings are conducted by senior, fully qualified staff members to include the company directors, namely Fergal Leonard MIPAV, James Heaslip MIPAV, and Alan Maxwell MSCSI, MRICS. This, according to Leonard, is a key element of their successful strategy as it keeps them fully informed as to the market reaction to every property throughout every step of the process.
Six of the eight lots were sold at Friday’s auction. Auctioneer James Heaslip deftly controlled the auction floor and grew accustomed to lowering his gavel in succession as the first six lots were sold. The day started on a positive note with Mr Heaslip informing the floor that Lot no 1, No 22 Hazelwood, a four bedroom detached house on Taylor’s Hill, one of the most desirable addresses in Galway, had been sold prior to auction, creating the perfect platform from which to launch Lot no 2, No 56 Gleann Dara, a four bed semidetached house located just off the Bishop O’Donnell Road. No 56 is in the heart of the estate and although it has been neglected in the recent past, needs no more than a small investment to restore the property, a fact which was recognised by the floor as the property, which had been guiding €70,000, went on to achieve a sale price of €91,000. “Although the AMV was very attractive for this property, it can be difficult to assess demand, particularly when an investment will be required immediately,” said director Alan Maxwell. “This is one of the main advantages of the auction route – the buyers on the day will decide the best price for the property and in this instance the result was the sale price exceeding the AMV by 30 per cent.”
Moving on to Lot no 3, auctioneer James Heaslip brought No 3 College Gate, Newcastle Road, to the floor. A small scheme of apartments, College Gate, as its name suggests, is located at the entrance to NUIG and across from University Hospital Galway. “Rarely do opportunities like this present themselves for the investor,” said selling agent Fergal Leonard prior to the auction. “With NUIG and UHG on the doorstep, this is an exceptional apartment and offers excellent rental yields with a potential of an eight per cent gross yield.” The activity on the auction floor, with a short period of intense bidding, culminated in the sale of the property for €142,000, the buyers on the day determining the value of the property to be 29 per cent more than the reserve price.
Lot number four was No 7 Henry Street, a three-storey townhouse located in the heart of the West, as it is affectionately known to Galwegians. Given its location and obvious potential, Alan Maxwell expected that it would appeal to “the small to medium investor who is interested in a building project that would complement any investment portfolio”. Intense bidding for No 7 culminated in a fast and furious bidding battle between two interested parties, both recognising the value on offer, which eventually saw the gavel come down at €180,000.
One of the most popular properties in the auction was up next, with No 46 Fr Burke Road introduced to the floor. Located in the Claddagh, a two minute walk from the restaurants and nightlife of Quay Street, and an equally short walk from Salthill promenade, this delightful mid-terrace home was popular with many looking for their first home. With a modest but realistic guide price of €180,000, No 56 again did not disappoint on the auction floor with bidding beginning swiftly and rising rapidly to a sale price of €212,000.
Next up was No 29 Gort na Coiribe, a ground floor two bed apartment, built by well known builders O’Malley Construction in the early 2000s as a Section 50 Tax driven development, which is now finished. According to Fergal Leonard this offered a strong investment opportunity as the development is managed exceptionally well and will always enjoy strong rental demand due to its proximity to Galway city centre and NUIG. The property, which had been guiding €110,000, sold on the auction floor for €123,000.
The remaining two lots of the day, No 196 Tirellan Heights, a large four bedroom detached house on a significant corner site, and a site with development potential in Oughterard, were both withdrawn from the market. For further information on both lots, contact James Heaslip on 091 565261.
For information on the 2013 auctions or details on how to list your property in the 2013 auctions, contact Property Partners Maxwell Heaslip & Leonard on 091 565261.
