I was arsing about on Daft today looking at 2 bed apartments around Dublin. I looked at Foxrock.
15 out of the 18 listings are all in the one development: Hollybrook/Brighton Rd, with various EAs involved.
Is there really a market for these properties, at those prices?
only 42,000 euros per year
lucky the euro is only monopoly money 
Not a chance, if you look at the prices for a 2 bed in Ballsbridge, generally around to €1600 a month - HALF the price
case study on the most expensive one chalice found in the above link
Its a 2 bed apartment.
Fine.
Its €2,000 per month.
mmmmnn k.
Then they mention…
Umm, that’s Ballsbridge, not Foxrock.
Those apartments in Foxrock have went for 7 figure sums in the past, rent of €3.3k chicken feed on a mortgage that size.
To answer your question - no, there is not a rental market for this even granted that rent is chicken feed compared to buying.
See the link below, it’s for Killiney rentals - almost all in The Court.
These have almost all been sitting empty since July as far as I know - I checked this place out myself out of curiosity.
Too expensive for the normal rental market, way too far from town for the elusive corporate let.
Who exactly they expect is going to pay 6k to rent a 2 bed apt is beyond me… any EAs who would like to shed some light, please do!
Chicken feed in comparison to the mortgage but a massive chunk of anyone’s wages.
Who can afford to rent these places?
No there isnt much demand for apartments at those prices. But the owners have big mortgages to cover and are either wilfully ignorant or in denial about the market reality.
They’ll start to drop the prices after six months or so of vacant property. Apartments in the KClub used to be very expensive until they realised nobody really wanted them. Now theyre renting for bog standard prices.
I can see that one is available for sale as well
For Rent - 44 HOLLYBROOK, BRIGHTON ROAD, Foxrock, Dublin 18. €2,750pm
www.daft.ie/2659
For Sale - 44 Hollybrook, Brighton Road, Foxrock, Dublin 18,
€1,000,000 (around €6,122 on the lowest variable mortgage over 20 years)
www.daft.ie/1327368
A gross yield of 3.0%! And probably isn’t even attainable.
6K is taking the piss alright, but rents if those parts are still at the several thousand mark.
I know when I worked out that direction, the gaffs there were renting at prices in excess of even highly paid people.
Have a look on Myhome. I think there is at least 4 of these apartments for sale.
Come into my million euro apartment and marvel at all my slanty slopey walls !
It just looks like a dodgy attic conversion to me.
The rental market is such an excellent arbiter of property value. Its utilitarian, unsentimental, value for money driven and has little or no regard for marketing or architectural flim-flam. Its a brass tacks assassin of bullshit and delusion. In this market the truth is to be found in the supply demand and price of rental property. It’s the acid test.
Rent is also more aligned with incomes, wheras house prices have become more a function of the easy availability of credit in time of high inflation, low nominal interest rates and negative real interest rates.
In short for anyone buying a house over the last decade it made more sense to borrow than to save.
Which is grand, as long as those interest rates stay low forever.
Agreed.
You will probably find that the wealthy developers are behind most of the EA signs. A developer rarely gives all his business to the one EA. The high rents are an act of subtle bravado, a Stalinist attempt to say everything is still in their hands ultimately, and they don’t actually need the rent anyway.
Its about getting people to worry either that this is what rent still is , despite the downturn, or that there are enough people out there that can afford these prices. Even discussing this is almost playing into their game-plan.
It’s their property they can list it for whatever they want. Of all of the devious game-plans property developers hatch, I doubt getting a thread in thepropertypin is one of them.
I live near-by, and although I wouldn’t pay that kind of money on a 2 bedroom apartment personally, it’s not an unprecedented pitch on their part. There’s hardly any apartments in “old Foxrock”.
Hey! I thought everyone agreed we have gone back to 2005 prices, and now the market can start rising again…
It couldn’t have been overpriced way back in in 2002 could it? Could it ???