Developers cut prices of new homes in Dublin...
Developers have sharply reduced prices at some of Dublin’s bigger housing schemes this weekend, in a bid to stimulate sales of vacant units and entice first-time buyers into the market. Price reductions of up to €150,000 are being offered at the latest releases of apartments and houses for sale.
P Elliott & Co has put a total of 80 units at four of its apartment schemes, on to the market through Hooke & MacDonald, at substantially reduced prices. Prices now start at €169,000 for a one-bedroom apartment at Arena in west Dublin, while a two-bedroom apartments at Mellowes Quay in Dublin 8 now costs €269,000, down from a high of €415,000 in spring 2007. Jackson Homes, Kingscroft Developments and Durkan New Homes have also reduced prices at their schemes by about €100,000, or up to 30 per cent on peak levels. Estate agents reported strong enquiries ahead of this weekend’s releases.
‘‘Based on the level of enquiries we’ve had, we expect to sell a good number of units but not all this weekend. I think the sales will happen over the next few weeks,” said Ken MacDonald of Hooke & MacDonald.
‘‘From the huge number of phone calls we’ve received, it would appear people are responding to lower prices.”
Sherry FitzGerald New Homes has released 35 units for sale at Jackson Homes’ Beechwood Court development on the Stillorgan Road in south Dublin. Two-bedroom apartments are now priced from €395,000, down 35 per cent on peak levels and down 12 per cent on 2004 launch prices.
Meanwhile residential sales data of actual sales prices seen by The Sunday Business Post reveals second-hand residential properties in the capital are selling well below the asking prices being quoted by estate agents. The data shows a number of large detached properties in Co Dublin changed hands at prices between 30 and 50 per cent lower than the asking price. Based on a sample of ten properties sold last month in the capital, the average second-hand dwelling was sold at a 25 per cent reduction on the original asking price.
Separately, new research from AIB argues that Ireland is well ahead of other European countries such as Spain and Britain in the housing cycle, in terms of the downturns in prices, and in particular, activity levels.
The research shows the price correction in Ireland started earlier than in Spain or Britain and also appear to have been more substantial. Prices in Ireland peaked at the end of 2006 compared to the third quarter of 2007 in Britain and the first quarter of 2008 in Spain.
Report By Michelle Devane - Sunday Business Post.