Desperation as luxury home prices halved...
A DEVELOPER of luxury homes just 11km from Dublin Airport has been forced to slash the €1.4m sales price in half in a bid to attract buyers.
Detached five-bed houses at Lynnwood in Ballyboughal, in north Co Dublin, originally went on the market for €1.4m.
The 3,013-sq-ft (280sq-m) houses were first reduced by €450,000 in a bid to attract purchase-shy buyers.
Then on Tuesday, the price was cut back another €100,000 to €850,000.
By late yesterday, developers Area Building dropped the price by another €100,000 to €750,000. The move to cut the price in half came days after leading developer Taggart was forced into administration.
Selling agent Paul Tobin said the homes were fully fitted out to a high standard.
He insisted that the developer had spent €1.1m building each of the houses in the small scheme, once land values and construction costs were added together.
Mr Tobin said the developer had been trying to sell the houses for months and was now anxious to release the money tied up in the development and move on to other projects.
Just up the road at The Grange in the same village, €300,000 has been knocked off the price of three- and four-bed houses to between €795,000 and €975,000. The 2,755-sq-ft (255sq-m) houses are fully fitted out, with plasma screens in the bathrooms.
Selling agent Darren Kelly of Property Team Noel Kelly said the cuts reflect a tough market. And the price cutting by builders gathered momentum yesterday when the developer behind a huge housing estate in Dublin slashed the prices.
Report by Charlie Weston Personal Finance Editor - Irish Independent Newspaper
Stanley Holdings has cut €100,000 from the asking price for houses in its huge Belmayne development in north Dublin.
This means that 30pc has been knocked off the prices of the homes in the large housing scheme, which has been heavily promoted with adverts featuring scantily clad women.
About 40 houses have seen their prices cut at Belmayne. Four-bed houses are now down to €400,000 with three-beds reduced to €330,000.
Analyst Scott Rankin of Davy estimated first-time buyers will spend €2bn less on new homes this year because of job insecurity and a widespread feeling that prices will fall further.