TIME FOR CHANGE

Largest Auction of Property in 20-Year History

An auction of new flats and family houses was held on 16th December in Prague in which the largest number of participants in the 20-year history of auctions and public sales competed for 39 properties from 10 development projects.

 

It was held by the GAVLAS auction and real estate agency and the Professionals real estate agency. Buyers found 38 new flats and family houses in the spaces of Autoklub, where the auction was held.

 

The largest auction in Czech Republic

"The auction surpassed all our expectations. A total of 131 potential buyers who paid the auction deposit actively participated in the auction and the bidding itself took 6 hours.

 

When taking the number of participants into account it was absolutely the largest auction that was held in the 20-year history of auctions in the Czech Republic. Up to 6 applicants competed for most of the properties and the resulting prices in some cases climbed to over 100% above the starting price.

 

The participants interest in the offered properties demonstrated the momentary real market price that people are willing to pay for a new flat," Ivo Gavlas, the owner of the GAVLAS auction agency, stated.

 

Over 250 potential owners came to see the properties in the period before the auction and almost 14 thousand visitors viewed the web pages over the course of the month-long advertising campaign. "It confirmed that the auctioning of property is a tool that has a future in the Czech Republic.

 

The positive result is proof that people already want to buy new flats and homes again. It also shows that the real estate market is waking up, interest is growing and the wheels of demand are slowly starting to turn," added Tomáš Duda, the Director of the Professionals real estate agency.

 

The auction offered 39 properties from 10 development projects, e.g. from Finep, Geosan and GeoPonte developers. They were new flats and family houses, mostly near completion, and people could aspire to flats in various price categories and sizes.

 

The development projects are located in Prague and its immediate surroundings. Those who were interested had the opportunity to visit the properties and carefully examine them in the period before the actual auction. Most of the family villas from our offer found new owners, which is a good result for us.

 

It confirms that people are starting to be interested in purchasing new housing, whether for private or investment purposes," added Pavel Rejchrt, a member of Finep's Board of Directors.

 

Examples of properties

Examples of properties that participants in the auction obtained: Rezidence Korunní 74, flat, 2 rooms with a kitchenette with a starting price of CZK 2,250,000 - final price CZK 3,450,000 Rezidence Císařka, villa, 5 rooms with a kitchenette with a starting price of CZK 14,900,000 - final price CZK 17,300,000 Na Zlaté, flat, 1 room with a kitchenette with a starting price of CZK 1,300,000 - final price CZK 2,500,000.

 

Unlike a public sale, an auction is a competition between the individual participants" offers with the highest offer winning and the auction winner signing a reservation agreement.

 

The sale then proceeds like in direct sales including a regular payment calendar and the financing of the purchase is also possible with the help of a mortgage. It is a common sales method abroad, through which a considerable amount of sales are realised.