Auction vital for gauge of valuations
The values for development land and yields for investment properties which will be achieved at the Real Estate Alliance auction on April 30 are expected to be observed closely, not alone by developers and their banks, but also by NAMA.
All three groups will be hoping that six development properties will sell at auction and provide a transparent market test of real commercial values at a time when some valuers are suggesting that some development sites may have fallen more than 70pc.
For investors the best value property to come to the market is a retail warehouse which could generate a yield of 11.5pc. The property, Unit 3 Deerpark Business Park, Dublin Road, Carlow, is generating a rent of €25,000 a year and Boyd's REA is quoting an AMV of €220,000.
In Dublin 8, a property at 81 Thomas St, could generate a yield of more than 8pc should it sell for its €200,000 AMV. It also has planning permission for three overhead apartments and a retail unit. Its agent, Orchard REA, also indicates a yield of more than 7.5pc for 31 Ravens Rock Road, Sandyford, Dublin 18, a warehouse on a corner site, should it sell for close to its €550,000 AMV.
On a price per acre basis, the most valuable site is the Grove St site in Roscrea, Co Tipperary, where the AMV is €350,000, which suggests €1.59m per acre. It has planning permission for five shops and office space.
One of the cheapest development sites on a per acre basis is Ballybane Lower, Granlahan, Ballinlough, Co Roscommon. It has planning permission for a 45-bedroom nursing home which would qualify for tax incentives. It has an AMV of €130,000 or €65,000 per acre .
The same price per acre is suggested by the €140,000 AMV on Site B Benamore, Roscrea, which extends to 2.1 acres. However, another site of half an acre in the Benamore development is guiding €60,000 or the equivalent of €120,000 per acre.