Wednesday 17 January 2018

Mixed-use sites around capital back in demand

The 1.07 acre site on Drimnagh Road, which was quoting €750,000 was sold
The 1.07 acre site on Drimnagh Road, which was quoting €750,000 was sold
The site at Cloverhill Road is guiding €75,000 to €100,000

Tara Fitzsimons

SAVILLS' development team say they are seeing a growing trend in demand for well-located mixed-use sites around Dublin city, and not just purely residential sites in the city's southside.

The agents have just sold a 1.07 acre site with full planning permission for a medical centre with retail units on the Drimnagh Road.

The site is zoned for mixed use under the district centre zoning and interest came from a "wide variety" of parties. The asking price for the site was €750,000.

The firm has subsequently been instructed to sell an adjoining site at No 119 Drimnagh Road on behalf of a different owner.

At 0.3 acres the site is much smaller – however it is similarly zoned and has planning permission for a primary care centre over retail units. The asking price is €150,000 and the agent is understood to be currently under offer above this level.

Earlier in the year Savills also agreed the sale of a 2.2 acre site at East Wall Road which is now the subject of planning application for a large mixed use development including an anchor supermarket. The site was marketed at €2.75m at the time.

REALISTIC

Last week Savills also brought the former Crossan Motors site with adjoining Topaz service station and large yard to the market at €2.75m, while the sale of another site close to Trinity College at Townsend Street with full planning permission for 36 student rooms went for more than €300,000.

"Where end users can be identified for such sites and asking prices are realistic, demand should continue from cash buyers for reasonable lot sizes," Savills' head of development Jonathan Preston said.

"It is encouraging that such sites are in demand. Obviously some parties in the market are already speculating on growth around the city in the not too distant future."

News of the higher demand around the "secondary" market for development land will be welcomed across the industry, and shows a further improvement in what it still a soft sector.

While demand in prime locations around central and south Dublin – especially with suitable planning permission – has been rampant for some time now, the perception has been that growth is focused on those locations only. Now that is beginning to change. It is still a slow process, however.

A 0.91 acre residential development site in Clondalkin, Dublin 22 is up for auction on December with a guide price of €75,000 to €100,000.

Unless sold beforehand, the site at Cloverhill Road will go under the hammer on December 10 at Buswells Hotel in central Dublin.

Savills say the site is primed for a small housing development (subject to planning consent) and "should prove very appealing to the market given its very attractive lot size".

The property comprises a cleared site with the exception of an old shed and is situated next to the Palmerstown Woods estate. It is located close to Clondalkin village and is a short distance from the N7 Naas Road and Park West Business Park.

FRONTAGE

Lands in Wicklow and Kildare have been successfully sold in this way and the agents have a number of other select auctions planned for properties in Clonsilla, The Coombe, Kimmage and Ashbourne.

Elsewhere, Savills have just sold a 21 hectares site in Portmarnock on the open market.

It is understood the sale price was close to the €1.2m guide.

The 52 acres on Moyne Road and next to Gannon Homes' Clongriffin, have extensive dual road frontage especially on to Moyne Road (R123) which links the Coast Road/Portmarnock Road and Malahide Road.

The lands are currently zoned GB in the Fingal County Development Plan and are set out for agricultural use. The lands are also subject to a road proposal which would open up the lands in the future and effectively link the upgraded Hole in the Wall Road with Drumnigh Road.

Mr Preston said the lands provided "an excellent opportunity to purchase a large holding close to Portmarnock village, Balgriffin and Clongriffin with immediate agricultural income potential for the short-medium term".

"While the lands may not be currently zoned for mainstream development, given the precedent of surrounding development, this may possibly change at some stage in the future. Good interest in the lands was shown by a mix of parties, including speculators and farmers".

Irish Independent

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