Urban/rural property divide on show at Dublin auction

The bidding for regional commercial units got off to a slow start at an Allsop Space auction in Dublin today.

Among the lots on sale were two semi-detached retail investment properties in Co Cavan, which auctioneer Gary Murphy offered at an opening price of €20,000.

A shout of €15,000 from a member of the crowd in the RDS set the ball rolling before the bidding intensified, rising mainly in increments of €1,000.

“You are making me work,” said Mr Murphy, before eventually selling the lot for €47,000.

People were showing considerable interest in family homes in Dublin, said director of auctions with Allsop Space Robert Hoban, adding that the gap between these properties and rural housing was widening.

A feature of today's sale is a telephone bidding section. Offers of more than €1 million came via the phone for two premises in Mallow, Co Cork, which are occupied by Advance Pitstop and An Post. The units went to a telephone bidder for some €1.55 million.

Mr Hoban said there appeared to be a distinct line between the prices paid for regional and rural commercial units, and tenanted buildings in the main cities and towns.

As he spoke, a commercial building in Sligo, currently let to Permanent TSB, sold for €2.4 million.

“What we are seeing is the emergence of small groups of people looking for commercial units which are tenanted and have a known investment potential. Small groups would be a few friends, who are known to each other, and they are looking for an investment together,” he said.

Vehicles in the car park bore a lot of regional registrations with counties Tipperary, Fermanagh, Mayo and Cork all well represented.