A two-room flat was sold at Dutch auction with an excess of the starting price

On 4th of June the Auction House of the Russian Federation (RAD) held a Dutch auction on behalf of Sberbank of Russia. For sale was offered residential two-room flat with an area of 51 sq. m in Vyborgsky district of St. Petersburg.
Address: bldg. 4, house 25, Culture avenue.
The object of sale was owned by the bank.
Four applications were submitted for participation in the auction.
Sale price of the object was – 4.4 million rubles, minimum selling price – 3.4 million rubles (starting price – 4.3 million rubles).
"Dutch auction is also called an auction for decrease.
The opportunity to buy the object below the starting price – one of the incentives for buyers. However, it happened that at such auctions property is sold for the price higher than the starting one.
Today's auction is a vivid example of that. After the price of the object fell to a minimum, the participants began to bargain actively.
A similar example was the Dutch auction for selling a garage in Khabarovsky Krai. The object was sold with excess of 32.1 thousand rubles (starting price – 108 thousand rubles), and all this despite the stop-out price – 1000 rubles! The similar thing occurred with the sale of three-room flat in Chelyabinsk region, which was sold with 152 thousand rubles excess of the starting price, with a minimum price of 630 thousand rubles.
As shows RAD practice, Dutch auction with its scheme of bidding is not less effective than English auction. In some cases, this type of auction, even preferable, since able to attract a larger number of participants and, consequently, allows to sell above the original price,"– says Olga Zheludkova, Head of the Department for Mortgaged Property.