Around the Block

A round-up of other property stories in brief.

Buyers likely to call the shots

Does anyone really know what is happening to house prices just now? A clatter of reports tell us that price increases are slowing down but still moving. Meanwhile estate agents are more bullish than ever with some brave enough to predict that the boom will go on for another five years. Be that as it may, the indications are that we are now heading into a buyers' market. Not only is there likely to be an over supply of apartments in some areas of Dublin, but some investors are now selling off their rental properties, reckoning that they have seen the best of the buoyant market. Other investors are planning to consolidate their portfolios by selling all their bits and pieces to buy one decent investment. Top of the wish list at the moment will be one of the AIB or Bank of Ireland branches which are about to hit the market at prices generally between €5 million and €9 million. Imagine the cachet of owning your local branch? No trouble in raising a loan for your daughter's new car after that. The banks are hoping to capitalise on the runaway commercial investment market, so expect a feeding frenzy over the coming months. The more cynical among us wonder why, if the branches are such good buys, that the banks have chosen to offload them at this stage. Remember Eircom.

Cute redbricks break estate agents hearts

While there will be any number of new apartments coming on the market this season, buyers with their hearts set on cute little redbricks in areas like Phibsboro, Drumcondra and Glasnevin have a long hard search ahead of them. Vendors with artisan cottages to sell are being persuaded to hold on to them when they trade up . . . by their friendly mortgage broker. The argument is that, with such huge numbers of overseas workers coming into the country, the rental level will remain strong and so finding tenants will be easy. With 100 per cent 30-year mortgages readily available it's easy to trade up and keep the smaller house as an investment.

The broker wins the mortgage business on a new loan and everyone is happy, except the estate agents who are missing out on sales. And of course anyone wanting to buy into those pretty redbrick neighbourhoods.

Board rejects high-rise scheme in Smithfield

An Bord Pleanála has rejected an attempt to improve the viability of Chief O'Neills hotel in Smithfield Square with a high-rise extension after opposition from a neighbouring apartment scheme. The hotel, which is knitted into the fabric of the old Jameson distillery, was originally owned by Terry Devey but was sold on to developer Lar Byrne in March for a reported €20 million.

It seems that Byrne, who owns the Champion Hurdle winner Hardy Eustace, may have backed a slow starter this time around. The general perception is that the Smithfield area hasn't taken off yet and is less than the thriving hub it was expected to be.

The planning board overturned Dublin City Council's decision and refused planning permission for a nine-storey cylindrical extension with bedrooms, a diningroom, bar and a function room.

This will come as good news to the residents of the Smithfield Village apartment complex who were among four appellants to An Bord Pleanála. The board said the height, scale and location of the development would result in a significant loss of sunlight to parts of Smithfield Village and cause overlooking. There would also be an "unacceptable level" of late night noise which would affect residents.