Of 76 properties that were listed by the Treasury in its recent auction, only two have found buyers. Property with a list price of €5 million was on offer but the third such public auction was devoid of buyers.
This is the third auction of assets that the state has undertaken in two years, and the third time that the results have been below the lowest expectations.
Between the 9th and 13th of December the Treasury put 76 properties up for auction, most of which are the former homes used by magistrates and judges. The Treasury's dream of €5 million of revenue turned into a reality of a miserable €81,500 from two sales.
The data was released by the General Directorate of Treasury and Finance (DGTF) and show that of the 76 properties listed for auction, 52 are homes held by the Justice Department. Of these only 47 were offered as five were withdrawn from auction with no reason given.
According to information from the Ministry of Justice the properties on offer included 23 new listings, while the rest were properties that had failed to sell at previous auctions.
Failure on such a scale is nothing new as in June only two houses were sold - for just €134,000 - but in December 2012 there was some action as 25 magistrates houses were sold for a total of €1.7 million. The value does not mean instant revenue as the Justice Ministry has agreed to take many payments over time.
Remarkably the June auction had the benefit of offering mortgage funding of 100% of the property values from Caixa Geral, plus free valuations, a low mortgage spread and a curious guarantee of the ‘impartiality of the valuation committee.’
The state has tried to increase revenues through the sale of the nation’s publically owned properties, most of which are shamefully derelict and in a poor state, simply unused and without a role.
In the state's further definition of madness i.e. doing the same thing over and over again and expecting a different result, it is going ahead with another auction early in 2014.
