A new report from the Economic and Social Research Institute (ESRI) has raised fresh questions about how Ireland’s property bidding system shapes prices and buyer behaviour, with findings that carry implications for rural markets as well as urban ones.

The study examined different bidding formats using a nationally representative sample of adults who took part in simulated property auctions alongside a detailed survey of their experiences. Researchers found that open bidding systems, including estate agent-led and online platforms, consistently resulted in higher final bids than sealed-bid formats.

Many participants exceeded what they had previously identified as their preferred budget once competitive bidding began, even when they believed they would remain disciplined.

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Although online platforms were widely perceived as more transparent and potentially better value, the experiment results suggested that open and visible competition can drive prices upward rather than contain them.

Behavioural factors such as rivalry, urgency and fear of missing out were shown to influence decisions more strongly than many buyers anticipated.

The survey also highlighted stress within the system. Two-thirds of buyers reported experiencing at least one significant transactional difficulty, rising further among those who had purchased in recent years. Conveyancing delays and unexpected additional costs were frequently referenced.

For rural buyers and sellers, where supply is often limited and competition for quality homes or farm properties can be intense, the findings are particularly relevant.

In smaller markets with fewer comparable properties, bidding structures may have a greater influence on final outcomes and price expectations.