41 Upper Leeson Street, Donnybrook, Dublin 4 (-355k, -26%)


#1

41 Upper Leeson St - MyHome.ie
Was €1,350,000 (October 2018), Now €995,000
41 Upper Leeson Street, Donnybrook, Dublin 4, D04 E8K1
(Incorporating: The Mews, 41 Sibthorpe Lane, Dublin 6, D06 YY72)

Interesting property on offer, comprising:

  • 1-bed / 1-bath self-contained apartment at garden level
  • 3-bed + attic / 1-bath main house at hall / first floor level
  • 2 bed / 1 bath + parking mews house to rear onto Sibthorpe Lane

Was up for auction with AMV €1m in October 2019, a year after coming on at €1.35m and failing to sell. Presumably did not sell at auction, or it did and it subsequently fell through, so back up now seeking €995k private treaty.

An interesting offering as either an investment proposition, retaining it as three separate self-contained units, or potentially for an owner-occupier with the mews as ancillary accommodation / rental income opportunity. There would be a significant investment required to refurbish the existing properties in either scenario, albeit it could potentially be rented out subject to relatively minor investment with a view to fully refurbishing it down the line to achieve higher rents and reduce maintenance issues.

This property, at this price, will be rather sobering for neighbours given prices achieved on this stretch in past years when the general property market was at a much lower point than today’s market. Two doors away, 39 Upper Leeson Street was for sale in 2015 for €1.675m. It was a similar two-storey over garden level property, but all three floors were connected internally. It wasn’t renovated or extended and it didn’t have a mews to the rear - it did have off-street parking to the front, which was a benefit. It was asking €7,790 per sqm and achieved €6,511 per sqm (€1.4m) in 2016.

This house, Number 41, in contrast is just €3,396 per sqm based on the 228sqm house and 65sqm mews. Its roof also has a different, higher, pitch with two small dormer windows that lends itself favourably to potentially getting a decent bedroom with bathroom up at that level.

It’s the tale of two markets - a lower / middle end Dublin market where prices are high and affordability is being pushed to the limit, compared to the high end market where, in pockets of the market at least, prices achieved aren’t all that much more than recessionary levels.

Overall, without physically inspecting it, this property is starting to make sense price-wise for investors and owner-occupiers and will be one to watch as the Covid-19 situation plays out and its impact on the market becomes clear.


#2

That is an interesting property. I saw it when it was being viewed for auction last year. Complete money pit. So I would think it will sit there for a long time, or a cash buyer that doesn’t need finance will dip into their unlimited pocket to live close to town.


#3

I remember in 2008/9 seeing places like this going for 600k (there was an example on Baggot St and another round the corner in Herbert Place(?)). They took a long time to sell. I think the kind of people who buy places like this have got hit pretty severely in this crash so I don’t see this selling. If they need to sell I can see it going under 700k.


#4

Yes, there was plenty of value to be had on inner-city Georgians at the time, but looking at this particular house and the residential stretch it’s on, they have commanded a premium even at the bottom of the market.

I already referenced the sale of No. 39. The house directly next door, 42 Upper Leeson Street, made €1.68 million in December 2013 - quite literally the bottom of the market - for a 278sqm house with 70sqm garage. That’s €4,827 per sqm and it took them five planning applications, a full refurbishment and extensions to the house and garage to get it up to top-notch standards. The average cost per sqm of refurbishing / extending that house would not be dissimilar to the cost that an incoming purchaser of No. 41 will face.

One very peculiar issue that the planning applications for No. 42 throws out in relation to No. 41, is that on the 1st floor of No. 42 there is a dressing room that is actually within the structure of No. 41 that is held under flying long lease. If that is the case, there is effectively a corner of the 1st floor of No. 41 cut out and in separate ownership, unless something has changed in the intervening period.

This is undoubtedly acting as a deterrent for interested parties, albeit it didn’t stop the purchaser of No. 42 paying as much as they did, when the situation is equally as peculiar for them as it is for an incoming purchaser of No. 41.

It also wouldn’t be as much of a psychological issue for an investor retaining the property as multiple units as it might be for an intending owner occupier. Period refurbs are a very active sector of the rental market at the moment with Pre-63’s being snapped up for big prices. The problem with that sector of the market is that it is driven by rental values, which, for the time being, are something of an unknown due to Covid-19.

Anyway, it’s an interesting property and I will be interested to see what it sells for down the line (and for what purpose) given the current price is so much lower than even 2013 pricing. Agreed that if anyone “needs” to sell at the moment that they will have to suffer an immediate 10-20% drop on pre-Covid values, but the medium-term impact on pricing is anyone’s guess for now.


#5

This now says ‘Sale Agreed’…will be interesting to see what it went for…