Thursday 19 September 2019

US property giant bids to sell two-bed flats to council for nearly €600,000

 

An artist’s impression of the Grange in Stillorgan, Co Dublin
An artist’s impression of the Grange in Stillorgan, Co Dublin

Gordon Deegan

A US-owned property firm is proposing to sell 18 two-bed apartments at a cost of almost €600,000 each for social housing.

The plan forms part of a new 287 apartment scheme at the Grange on the Stillorgan Road in south Dublin.

Kennedy Wilson, which previously noted how it could make more money in the Dublin market than it could in Los Angeles, has lodged 'fast-track' plans to An Bord Pleanála for the 287 apartments.

Documentation lodged with the appeals board shows that Kennedy Wilson has put an "indicative" cost of €13.57m on selling 29 apartments to Dún Laoghaire-Rathdown County Council to comply with its Part V social and affordable housing obligations.

The documentation shows that the property company has put an indicative €583,000 cost on each of the 18 two-bed apartments and €280,000 on each of the 11 one-bed apartments.

The average price for all types of properties in south Dublin is €600,000, according to the most recent Irish House Price report from daft.ie. This includes both apartments and houses.

The average price of a one-bed apartment in the area is €301,000, according to the report.

At the Grange development, the social units - representing 10pc of the overall development - will be in the same block.

If the eventual planning permission from An Bord Pleanála reduces the scale of the development, this will result in a pro-rata reduction in the number of Part V social units to be provided.

Separately in another proposed Part V deal, Cairn Homes is offering to sell 44 apartments at a total cost of €14m for social housing to South Dublin County Council from its planned 406-unit development at Newcastle South and Ballynakelly, Newcastle, Co Dublin.

The entire development is to be made up of 281 houses and 125 apartments.

Cairn is putting forward a mix of two and three-bed houses along with one, two and three-bed apartments in the Part V deal.

The housebuilder has put an indicative cost of €349,283 on the three-bedroom homes and €429,620 on the three-bedroom apartments.

The appeals board is due to make decisions on the two applications in January 2020.

Earlier this year, Kennedy Wilson revealed how it aimed to more than double the number of apartments it controls in Dublin to 5,000 as a "renting philosophy" evolves in the city.

It said the 2,000-plus apartments that it manages in the capital were generating average monthly rents of $2,294 (€2,049).

This is significantly more than the apartments that the group owns in and around the Greater Los Angeles area.

In southern California, where Kennedy Wilson owns almost 3,000 apartments in total, the average monthly rent for its properties is $1,939 (€1,731).

Kennedy Wilson president Mary Ricks said in May that the apartment rental market in Dublin "continues to perform very strongly, driven by high demand and significant undersupply".

Irish Independent

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