WIW Embassy House, 32 Burlington Road, Ballsbridge, D4

Appearing on the list of top sales for 2015 - Embassy House, Burlington Road, Ballsbridge, D4 for 5.5m

Address Information
Embassy House 32 Burlington Road
Mews at Waterloo Lane
Dublin 4
Sale Information
Date of Sale: 01/04/2015
Price: €5,500,000.00
Not Full Market Price: No
VAT Exclusive: No
Description of Property: Second-Hand Dwelling house /Apartment

Not only was this not an “arms length transaction” but there was a specific reason why the highest justifiable price possible was used for the internal transfer of this property.
A major Dublin agency was happy to oblige such a request :smiley:

However, that did not stop EAs using the Embassy House “sale”, as evidence for two other major embassy / corporate sales in 2015 (i.e. the embassy / corporate will pay whatever is justifiable by their EA advisor - you can guess that result).

This is why:

  1. The Irish property pumping papers (Irish Times and Independent) were reluctant to run “top sales of 2015” articles, as there are a few other versions like Embassy House on it (as well as entries that are really commercial like Abington in Malahide, or multi-family development sites, like Ard Na Glaise). When you strip them out, things are not so good.

  2. A small number of “mint condition” houses in core D4 / D6 have sold really well in 2015 (i.e. mostly to embassy / corporate buyers), but why non-mint condition houses, didn’t sell, or had much bigger discounts (i.e. 81 Park Avenue, 7 Temple Gardens, 70 Ailesbury Road). The demand from non-embassy / non-corporate buyers is very poor. It has gotten so bad, that most D4/D6 EAs have effectively stopped using auctions (as the embassy / corporate buyer would see they are the only person in the room). The Irish Times and Independent have been using very “specific” language to try and imply the buyers of these embassy / corporate houses might have been in fact domestic.

  3. Non-embassy / non-corporate prime D4 sales in 2016, with 2013 benchmark sales beside them, show pricing, if anything, is weaker in core D4, than it was in mid 2013 (3 years ago).

(a) 70 Ailesbury Road (2.25m in 2016) vs. 56 Ailesbury Road (2.4m in 2013) thepropertypin.com/viewtopic.php?f=23&t=65271
(b) 57 Merrion Road (2.3m in 2016) vs. 55 Merrion Road (2.4m in 2013) thepropertypin.com/viewtopic.php?f=10&t=65783
© St Finbars Ailesbury Road (1.8m in 2016) vs. Santa Anna Ailesbury Road (1.8m in 2013) thepropertypin.com/viewtopic.php?f=10&t=65785

  1. We even see the same out in SoCoDu as well:

(a) Windermere at 2016 pricing that is in line with what it would have gotten in mid 2013, at best. thepropertypin.com/viewtopic.php?f=10&t=65784
(b) Alyesbury at late 2015 pricing that is also probably in line with what it would have gotten in mid 2013. thepropertypin.com/viewtopic.php?f=23&t=64610

Take out the Embassy / Corporate sales from the PPR (and the ones that not proper “arms length” true residential sales like 32 Burlington Road and 25 Ailesbury Road), and you get a much weaker picture than the Irish “bubble media” would lead you to believe.

Top 10 sales (excluding internal restructures and development plays) were:

  1. Sorrento House, 1 Sorrento Terrace, Killiney - €10,000,000
  2. Strathmore House, Strathmore Road, Killiney - €7,500,000
  3. Carlanea, Thormanby Road, Baily, Howth - €5,000,000
  4. Mugnano, 7 Shrewsbury Road, Ballsbridge - €4,800,000
  5. 47 Sandford Road, Ranelagh - €4,350,000
  6. Sunnyside, Vico Road, Killiney - €4,350,000
  7. 61 Eglinton Road, Ballsbridge - €3,600,000
  8. 30 St Kevin’s Park, Dartry - €3,500,000
  9. Nerano House, Nerano Road, Dalkey - €3,300,000
  10. Nutgrove, Richmond Avenue South, Dartry - €3,125,000

Mix of buyers, both international and domestic, but all private individuals. No embassies purchased houses in 2015 as far as I’m aware, and no embassy purchases come to mind for 2014 either. There were a few in 2012/2013 when things were cheap, however as most embassies don’t pay stamp duty, the transactions aren’t on the register.

Excluded properties were:
Kenah Hill, St Georges Avenue, Killiney - €9,000,000 (Restructure)
Embassy House, 32 Burlington Road, Ballsbridge - €5,500,000 (Restructure)
Bolton Hall, Rathfarnham - €4,800,000 (Development Play)
Ard na Glaise, Stillorgan Park, Blackrock - €3,600,000 (Development Play)
Four Winds, Brighton Road, Foxrock - €3,450,000 (Development Play)
Rockall, The Birches, Foxrock - €3,390,000 (Development Play)
Balure House, Church Road, Killiney - €3,250,000 (Development Play)

fully agree with the above list - it is the correct “scrubbing” of the 2015 top 10 resi data.

would be interested to see what you think of my analysis on this link SoCoDu and if you would come to the same result ?

PS - two of the above top 10 sales were funded by a corporate (company loan, but not a company “owned” by the buyer), and one of them has a high chance of repeating what is happening to Owen Killian with 2 Shrewsbury Road (i.e. collateral call).

I’d love to know the story behind the Embassy House restructuring :angry:

perhaps a gift from an american friend for exemplary service in the line-of-duty

(i.e. “please sign all these documents now”).

God that is such a horrible house on that road. How Johnny Ronan got permission etc etc…

Oooh. Thanks.

I disagree with grumpy, I like it from the outside. The inside is hideous.

It is uncanny how correlated the quality of a builder’s projects are with the quality of their own houses (i.e. the give away).

There are a small number who built really high-end high-quality commercial, and have equally high-end high-quality homes.

There are a bigger number (sadly), and particularly on the larger developers (again, sadly) who built cheaper-grade commercial (i.e. use the QS to take items out / replace with cheaper alternatives, and pocket the difference), and same for their houses.

If Embassy House 32 Burlington Road was done in high quality brick work and windows (like say Chris Jones house on Eglinton Road), it could look good. Sadly it has cheaper render (which is already fading) and window fittings (also fading).

Even that level of diligence would have been a “red flag” for Irish banks
(sadly, they were not looking for flags of any color, before they had to hoist their own “white flag”).

PS - see following link for updated analysis on Dublin high-end residential prices in 2012 vs. 2013 vs. 2014. vs. 2015