CBRE Research Bi-Monthly Report – The Development Land Market

CBRE Research Bi-Monthly Report – The Development Land Market

There has been an increasing volume of development sites being formally offered for sale in recent months. Many of these sites are being brought to the market on the instructions of receivers while others are consensual sales.

In the current market, demand for sites, which is predominantly emanating from cash buyers and special purchasers, is ultimately dependent on the location and the quoting price, with reasonably strong demand prevailing for lot sizes of less than €2 million in good locations.

Site sales that have been agreed recently include the sale of a 1.25 acre site with planning permission for 18 apartments at the corner of Sandford Road and Eglington Road in Ranelagh in Dublin 6: the sale of a residential zoned site at Herbert Road in Bray, Co. Wicklow, which sold for approximately €1 million and the sale of a mews site in Northbrook Lane in Ranelagh, Dublin 6, which has been agreed for approximately €375,000. 35 acres of industrial zoned land in Athy, Co Kildare recently sold for €550,000 or €15,700 per acre. Meanwhile, a 105 acre land parcel at Dunsany in County Meath sold recently for €10,000 per acre while a 191 acre residential farm at Roscrea, Co. Tipperary sold for more than €1.3 million.

Sites that are currently being marketed include the 15.7 acre Cemex site in Naas, Co. Kildare, which is being guided at €4.5 million; a 1.77 acre site with planning permission for 59 apartments at Howth Road in Clontarf, Dublin 3, which is on the market guiding €2 million; a 0.75 acre site at Killester Avenue in Killester, Dublin 5, which has planning permission for 9 houses and which is guiding €450,000; a ready-to-go 1.8 acre site at Carrickmines in south Dublin, which is guiding €1.2 million; a 1.98 acre site at Sutton Cross in north Dublin with planning permission for 60 apartments, which is guiding €1.55 million; the well-known 3.28 acre former Dawn Dairies site at Dublin Road, Galway, which is being offered for sale guiding €2 million and a three acre residential site in Donabate in north Dublin, which is guiding €300,000.

The largest parcel of land being offered for sale at present is undoubtedly the 465 acre Milverton Demesne lands in Skerries in north Dublin, which is guiding €9.5 million.

With all local authorities now focussed on implementing their ‘core strategies’, Killarney Town Council are the latest local authority to consider freezing the development of 108 hectares of residential zoned land in their current development plan for the town.

The Department of the Environment & Local Government have in recent weeks released an update to their 2010 National Housing Survey. According to the 2011 survey, one in five of the new homes recorded as vacant in the Republic last year are now in beneficial use while the number of ghost estates has fallen from 2,876 to 2,066 in the 12 month period.

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