Saturday 24 March 2018

Main beneficiaries of the boom hit hardest by crash

THE higher they climbed, the sharper they are falling. While average house prices may have fallen by half, the range of price falls varies considerably from area to area and from house to house.

In Dublin 4, where there were some of the highest price rises during the boom, houses have fallen by more than 60pc from their peak.

But in Ballina, Co Mayo, two houses on the market are priced at only about 40pc off their peak.

Three-bedroom houses at Robswall, Malahide, Dublin, sold for €780,000 in October 2006. Now they are asking €320,000, a 59pc fall for these 1,100sq ft houses.

The same agent, HT Meagher O'Reilly, has made even sharper cuts in the price of a three-bedroom townhouse in Liam Carroll's Gasworks development in Ringsend, Dublin 4.

At the peak, these were brought to the market asking €900,000 plus a further €40,000 if the buyer wanted a parking space. Now the price has been slashed 63pc to €350,000 and that includes the parking space.

At the Allsop Space auction in July, a five-bedroom semi-detached house on Upper Kilmacud Road, Stillorgan, Dublin 14, sold for €280,000. During the peak, a similar house a few doors away sold for €913,000 and the buyers had to pay 9pc stamp duty -- a total of €995,170.

With stamp duty now down to only 1pc, this year's buyer is effectively benefitting from a fall of as much as 70pc in their outlay.

In Co Galway, auctioneers O'Donnellan Joyce are also guiding €120,000 for a four-bedroom bungalow on half an acre with a warehouse at Corbally outside the village of Claregalway. At the peak of the market similar properties sold for around €340,000 -- a drop of 65pc.

In Carlow town, a three-bedroom semi, 8 The View, Chapelstown Gate, off the Tullow Road, is now asking €128,500. At the market peak in 2006, this property was worth €265,000 -- a drop of 51.5pc.

These houses first came to the market in 2003 and Sotherns sold them off the plans for €175,000.

In Ballina, Co Mayo, two semi-detached houses are available at different ends of the spectrum. In the town's most sought-after area, a five-bedroom period house at Riverslade, The Quay, would have sold for €650,000 at the peak. Now it is asking €380,000 -- a fall of 42pc. Meanwhile, 14 The Commons, a four-bedroom semi, is now asking €110,000 -- down 41pc from the peak of €185,000.

In Kilkenny city, a three-bedroom detached house, Ashurst, College Road, in the Marble City's answer to Dublin 4, recently went sale agreed for around €220,000. Agent Peter McCreery said that, at the peak, similar houses sold for €420,000 -- a drop of 48pc.

But asking prices are not always a good guide to the market. Recent surveys suggest that most asking prices are about 10pc over the actual sales price. However, when it comes to auctions, the guide prices can sometimes be below what the properties sell for, although a few have sold for below their guide prices.

This may be why Allsop Space is quoting such low prices for five Donegal houses, which it will auction on November 30.

The five range from a three-bedroom semi with a €21,000 guide price to two four-bedroom detached houses priced at €32,000.

There are also two four-bedroom semis guiding €26,000. All are located in Beechwood Park development in Convoy, Co Donegal, and nearby similar houses are on the market with asking prices ranging from €100,000 to €150,000.

Irish Independent

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