Land in demand at Allsop auction

Demand for land parcels for development was apparent at yesterday's Allsop Space auction in Dublin. Speculative investors snapped up a number of sites in the capital with a view to possibly developing residential properties on them.

For example, a detached block of 12 one-bed apartments in Sweetmount House, Dundrum sold for €1.45 million. Ten of the 12 apartments are occupied but with a rental income of just €70,960 per annum, it’s likely the purchaser has bigger plans for the 0.3 acre site.

A 0.14 acre site at 20-24 Bolton Street in Dublin 1 also sold significantly above its €165,000-€185,000 reserve when it was bought for €650,000 on the day.

Director of Auctions at Allsop Space Robert Hoban said that the demand for land has become a clear trend.

“We can’t offer enough development sites at the minute. The sale of Sweetmount House in Dundrum sums it all up because when you compare the rental income with what it sold for, it just doesn’t stack up. The development angle is key to the purchaser though, and that’s an area where there’s a real need for new homes to be built,” he said.

Outside the capital, in Carrickmacross, Co Monaghan, 37 residential units in the unfinished Ascail Rois estate also went for almost double their reserve price at €1.925 million.

“The investor will always look for an end product and they clearly see an exit strategy down the line when they’re making purchases such as this. It’s certainly positive for the unfinished housing estates around the country, while in the cities it will hopefully help cater for the demand for new homes, ” Hoban said.

Some investors were willing to take a longer term view with their purchases. For example, 50 Elmwood Avenue in Ranelagh, Dublin 6 sold for €350,000 despite having a rental income of just €600 per annum and a life tenancy in situ. The auction saw 194 properties sold for a total of €54.5 million.