Colleran auctioneers maintained its 100 per cent success rate last week with its final auction of the year. Don Colleran has been reporting for some months now that property prices within the city centre were on the rise, in some cases by as much as 20 per cent. Housing stock within the city centre has now reached alarmingly low levels both for those looking for investment and for family homes. Buyers are now reporting great difficulty and frustration in finding suitable properties.
“For the first time in many years we now have a long list of buyers with finance looking to buy,” reported Don Colleran. ”This explains why most of our sales exceeded their guide price over the last six months.” What is most interesting is that this rise in property prices is taking place during a period when very little lending is taking place. If finance does become more available next year, which is very likely, and the shortage of properties continues, price can only go one way. This was certainly the sentiment at Colleran’s auction last week when there were at least five bidders chasing each property, and what was more surprising was that two of the properties were sold to purchasers who had yet to view the houses.
Both houses were within the heart of the city. The first was No 23 Waterlane, a two/three bedroom end of terrace house fronting on to a very large green area, seldom found in the city centre. Bidding opened at its AMV at €120,000 and, following some fast and furious bidding, the house was sold for €166,000 to a man who later revealed he had yet to see the property.
The second property which was purchased without being viewed was less surprising as it was best described as a site. No 4 Grealishtown, Bohermore, a derelict house opposite the cemetery, had generated considerable interest from builders and investors. Bidding opened at €50,000 and quickly rose in increments of €1,000 with five individuals bidding against each other. When on a number of occasions it appeared the bidding was finished, Don Colleran delayed dropping his gavel, sensing there was a little more left, and he was proven right before eventually dropping his gavel and selling the property for €73,000.
We are now seeing a lot of interest in Galway properties from outside the county and overseas. Many Irish people earning good money abroad have now targeted Galway city as the location to invest in or to return to some time in the near future in order to raise their families. While this return to growth is mainly confined to the city centre, Don Colleran believes that this will spread further out in the New Year. Colleran’s is already compiling a list of properties for its next auction in March and is offering free property appraisals for those thinking of selling.
For more information contact Colleran auctioneers at 091 562293.