Residential Property Auctions: What do they tell us?
AbstractThis letter analyses results from residential property auctions conducted over the last eighteen months. At present, where there is considerable uncertainty surrounding the property market and transaction activity has declined, auctions can provide some transparency to the market. The limitation of the auction data, however, is the small sample size which means caution should be used in generalising widely from the results. The analysis indicates that properties sold at auction do so at a discount to the current market asking price and, on average, at a level over 65 per cent below peak prices. Additionally, rental yields achieved on the properties sold are above current market yields and at levels similar to those seen in the mid-1990s. The analysis also suggests that conditions differ across segments of the market as Dublin properties on average sold for smaller discounts relative to peak and current asking prices than properties outside of Dublin.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Central Bank of Ireland in its series Economic Letters with number 10/EL/12.
Date of creation: Oct 2012
Date of revision:
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Smith).
If references are entirely missing, you can add them using this form.