Another year of dysfunction ahead for Ireland’s property market
One company that added significantly to the housing stock in 2019 was Irish-listed housebuilder Glenveagh Properties, which completed 844 unit sales during the year, generating revenue of €284 million.
The average selling price achieved by the company rose by a tasty 16 per cent to €332,000, reflecting “significant deliveries” from starter-home schemes and the sale of 90 units at Herbert Hill in Dundrum.
The Dundrum sale highlights the peculiar nature of the Irish housing market at present. Glenveagh sold the development – which is situated beside the Dundrum Town Centre – as a job lot to German investor Realis for €55 million. That equates to a healthy average price of €611,000 each.
In turn, Realis is reported to be planning a 25-year agreement with Dún Laoghaire-Rathdown County Council, which will pay up to €3,000 a month to rent these properties to accommodate people on its social housing list.
This would set a high benchmark for people trying to rent under their own steam in the area, who then struggle to save the deposit required by the Central Bank to buy a house, which would be cheaper for them financially than paying sky-high rents.**
It has also taken 90 housing units (situated right beside the Luas green line) off the market for sale to young couples, who are crying out for well-located properties to purchase.
More 3 grand a month social housing for Dundrum