Property prices reflect NAMA discount
NAMA's decision to value property loans at only 40 cent in the euro is a reflection of how property prices have already fallen by 60pc from peak -- or more in some cases.
There are numerous examples around the country where receivers, property developers, hoteliers and ordinary home owners are settling for prices 60pc below what their properties might have achieved at the market peak in 2006.
These range from houses in some of the most sought-after areas such as Ailesbury Road in Dublin 4, to hotels in the West of Ireland.
Developer Sean Kelly, who developed the swish Mary's Abbey office near the Four Courts to cater for the legal profession, is now selling a spacious five-bedroom detached house at 62 Ailesbury Road near the corner with Shrewsbury Road.
In 2005, the house sold for €6.5m. Now the agents Lisney are asking €2.5m -- a drop of 62pc. Sitting on almost a third of an acre, the property comes with three reception rooms, which makes it tailor-made for members of the diplomatic profession who frequent the surrounding area and who need to engage in extensive hospitality as part of their work.
Strand House, at 12 Strand Road in Sandymount has seen its price fall by 57pc. In 2007 it went to auction with a price tag of €4.5m.
Now the current agents, Savills, are asking just €1.95m for the extensively refurbished property, which is described as enjoying "stunning uninterrupted sea views". Extending to 325sqm, it comes with five bedrooms including three en suites, and three reception rooms.
Dublin city-centre apartments have also dropped sharply. For instance, a one-bedroom apartment that sold for as much as €630,000 at the peak of the market is now for sale through Savills for just €245,000 -- a drop of 61pc.
Overlooking Wilton Place Park, next to the tree-lined Grand Canal, 6 Court Apartments is within a stone's throw of the headquarters of a number of Ireland's leading banks -- Anglo, Bank of Ireland and EBS are all on the nearby Mespil and Burlington Roads.