No.of public auctions falls, involuntary auctions on the rise in Q1-3

Prague, Oct 1 (CTK) - The total number of public auctions fell in the Czech Republic in the first three quarters of this year but growth in the number of involuntary auctions continued, reaching 13 percent to the highest level since 2000, according to statistics on server www.centralniadresa.cz.

The total number of auctions dropped by 13 percent and total proceeds from them by 20 percent.

The fall in the number of voluntary auctions came, among other things, thanks to the overall situation on the real estate market, said Libor Nevsimal, sales director of auction house Naxos.

"Moreover, the primary source of voluntary auctions, that is insolvency proceedings and ending bankruptcy proceedings, is now in the stage of preparations and waiting. Sales of real properties themselves are being postponed," Nevsimal told CTK.

Protracted court disputes and low willingness of banks to finance purchases of commercial real estate have also contributed to the fall in the total number of auctions, he added.

There were 750 involuntary auctions in January-September this year, compared with 663 involuntary auctions in the same period of 2011.

"The number of involuntary auctions grows in harmony with the constantly decreasing ability of most debtors to pay debts stemming from mortgage and consumer loans with real estate as a collateral," Nevsimal explained.

The total value of the auctioned property in Q1-3 2012 decreased by 5 percent year on year to Kc7bn and proceeds from these auctions dropped by a fifth to Kc2.2bn.

Public auctions in CR in Q1-3 2005 to Q1-3 2012:

year (Q1-3) total no.of auctions voluntary auctions involuntary auctions real estate auctions movable property auctions movable and immovable property auctions total amount of property put up for auctions (in Kc bn) total amount auctioned (in Kc bn)
2012 2,503 1,753 750 2,296 159 46 6.99 2.21
2011 2,863 2,200 663 2,664 150 47 7.37 2.76
2010 2,307 1,703 604 2,071 170 57 11.16 2.86
2009 1,853 1,556 297 1,608 171 58 5.95 1.93
2008 1,990 1,747 243 1,634 268 71 6.19 3.61
2007 2,204 1,956 248 1,793 299 90 8.2 4.45
2006 2,445 2,257 188 2,014 298 115 6.29 2.96
2005 3,021 2,681 340 2,501 327 171 8.1 3.97

Source: www.centralniadresa.cz (as of Oct 1, 2012)