Huge pent-up demand sees online house auction prices soar
BidX1, the digital property investment platform, has reported record-breaking numbers of bidders at an online auction of Irish residential and commercial property held last Friday, March 19, 2021.
1,102 bidders registered to take part, completing a process that requires buyers to provide a deposit in advance of the auction in order to be approved for bidding.
BidX1 sold 186 properties in total, raising more than €37m. Over 4,000 bids were placed, resulting in an average increase of 25% on guide prices across the board.
Jonathan Fenn, Head of Property at BidX1, commented, “These results speak for themselves. It was a hugely successful day for the team, and we’re delighted to have achieved such strong outcomes for clients across the board.
“When we surveyed our buyer database before launching the catalogue in February, 89% of respondents said they intended to purchase a property this year – and more than 70% of those were seeking a house or apartment.
“This finding was reflected in the activity on our platform last week, with record numbers of bidders and sales across all 26 counties.
“It is also worth noting that 916 under-bidders walked away empty-handed, all of whom are seeking to invest in property. Their unsuccessful bids totalled an incredible €120m; that’s a lot of capital looking for an investment opportunity.
“It’s clear that there is pent-up demand in the market, particularly for residential investments, and we’ve been able to meet that demand by offering a very wide range of assets on the platform – and with technology that enables investors to complete the full transaction online. We have already started listing properties for our April sale.”
A semi-detached three-bedroom house in Goatstown, Dublin 14, attracted some of the most competitive bidding on the day; eight parties battled it out across 118 bids, driving the price from an opening bid of €550,000 up to €676,000.
A mixed-use property in Kildare was also the subject of intense bidding. Comprising two ground floor retail units with two apartments overhead, the property on Leixlip’s Main Street attracted 89 bids before closing at €623,000 – more than €150,000 above the opening bid of €470,000.
BidX1 leaned heavily on their digital credentials to ensure that buyers could assess the properties despite Level 5 restrictions by providing a range of virtual viewing options. These included self-guided tours, allowing users to virtually tour properties themselves at any time, but also 3D walk-throughs with a BidX1 agent. In this case, the agent brings interested parties on a live walk-through of the house or commercial unit, allowing them to discuss the property with an expert in real-time, as they view it.
“Buyers want to be able to ask questions and engage with a professional. Our 3D tours are fantastic because they combine technology with a personal touch”, Fenn said.
“Last week’s auction attracted buyers from Germany, Australia, Malta and the UK, so these virtual viewings also serve overseas buyers who are seeking to invest in Irish real estate.”
BidX1’s next multi-property sale is scheduled for April 21. The Irish firm, which specialises in online property transactions, pioneered the first online auctions in Ireland in 2015 and has since brought the model further afield, offering property investments in Spain, South Africa, Cyprus and the UK on their platform.