It's the empties, stupid - Dublin edition

You might have noticed that the bulls have a new talking point - that the overhang of new properties is only in Leitrim, or Roscommon, or Longford or … somewhere else anyway. Dublin is safe, yes siree. No overhang here.

This might be true if you simply look at whether builders have units they’ve failed to shift. It’s certainly not true if you look at the new properties which have been sitting unoccupied for the last few years as owners gambled on capital appreciation and couldn’t be bothered with actual tenants.

Here are a few I’ve spotted lately:

Mount St. Annes - 2 bed apt vacant since 2004? Sold for €475kthen, now asking €499k.

Edward Square, Bloomfield Road, Donnybrook - 3 bed townhouse, vacant for two years. Asking €1.65m. Sold for between €1.4 and €1.8 then.

Leeson Place, Adelaide Road - 2 bed mews house unoccupied for seven(!) years. According to the brochure, it’s “in show-house condition, c. the year 2000”. Asking €850k. Can’t find the original price.

Mount St. Annes - 2 bed apt vacant since last year? Asking €705k. Sold for €720k then.

Etc., etc.

How many more of these ghosts are there out there? And what effect will they have on prices?

Good work JC. I personally know one guy who has 3 in Bloomfield. One has been let. Is now considering selling all 3.

Damn :open_mouth:
Hes gonna take a hit on those.

Everyone in the country should view these apartments, a clear concise picture on how we went completely out of touch with reality. There needs to be massive drops for those shoe boxes to sell.

Yep, he’s a fairly wealthy solicitor but still he’s probably looking at approx € 300K of a loss (he estimates), *as things stand *(assuming there’s a fool out there ready to take them off his hands).

but still he’s probably looking at approx € 300K of a loss (he estimates), *as things stand *(assuming there’s a fool out there ready to take them off his hands).

my sympathy just flew out the window as I read those words

my worst-ever landlord was an esteemed member of the legal profession who screwed us every way he could and then wrote threatening letters when we tried to stand up to him

karma imo

sometimes it’s hard to draw the line between your real job and your amateur landlording.

my sympathy just flew out the window as I read those words

my worst-ever landlord was an esteemed member of the legal profession who screwed us every way he could and then wrote threatening letters when we tried to stand up to him

karma imo

You’d be surprised how many LLs are solicitors. Since they have a closed shop they charge extortionate amounts of money for their services and have been able to invest their excess earnings in property. I view them as parasites.

Not a big fan myself, but I’m curious what you mean by closed shop.
Are they not accepting any new members?

I sometimes think, I missed my calling. Imagine getting paid to argue.
Sadly, as a kid computers were my hobby. I only got into the arguing business much later on.

-Rd

Yeah, marriage’ll do that to ya. :laughing:

ziinnnng!!!

:laughing:

Is that hit on capital appreciation alone, and is it per house? I mean, if the mortgage was for €1.5m he would be paying aoubt 70k interest per year. So if he sells for what he bought at, he would be making a loss of approx €410k on the 3 properties over 2 years (less any rent obtained from the one that was let).

You’d be surprised how many LLs are solicitors. Since they have a closed shop they charge extortionate amounts of money for their services and have been able to invest their excess earnings in property. I view them as parasites.
Seems to me that the most successful property speculators are those who have another occupation that has good cash flow - recall working for 2 guys flogging hifi in the early seventies who used their huge cash flow to finance property acquisition around where the Central Bank now is. Well the BLoodsuckers sorry solicitors use their so-called client accounts to do the same thing. The more reputable ones, I believe, use client monies to make a tidy amount of interest for themselves via the Law Soc holding account (where it is sort safe), or have it “resting” in their current or linked accounts so they never pay overdrafts or if they can stall you for a good few months they will buy big blocks of Prize Bonds. The less reputable ones just steal the money. It pleased me no end when some of them got burned in the West Cork Pyramid scheme a couple of years back (remember the “give yer money to a stranger in a Munich hotel” scam) so should some more lose out through property I would have difficulty restraining my glee. db.

How about entire developments like Priors Gate in Tallaght (few hundred apartments sitting empty) or the huge development in Saggart that seems to have had no work done in the last 6 months? I pass those on the way to work every morning.

Good point gaius. I tried to dig up vacant high end properties to counter the myth that the vacancies are all in new builds out in Adamstown, Sandyford, etc.

I only quote those as I’ve seen them with my own two eyes but I’m sure that others could tell you the state of empties in the docklands. I don’t think there are ghost estates in the “more upmarket areas” but there are plenty of individual houses still not selling.

Priors Gate is small fry compared to the apartment blocks around the Tallaght Cross area up to Tallaght hospital. It was like walking through an abandoned city!!