UK interest keeps country market moving

CountryHouses:Irish country houses are still seen as a good investment by foreign buyers, says Kate McMorrow

THE country house market slowed somewhat in 2007, as potential buyers struggled to offload their city properties and the bad weather dampened spirits.

However, this sector was protected by other factors, with good period houses in tip-top condition attracting buyers. Renewed interest from UK buyers was a significant trend, driven by competitive exchange rates.

Lakeshore and riverfront properties were highly sought-after and proximity to a regional or international airport was a key factor.

Scarcity of supply was another issue. While the market never reached the dizzy heights of 2006, a good house in Kildare, Meath or Wicklow rarely failed to attract offers, says Marcus Magnier of Colliers Jackson-Stops. "It's been some time since a good period house came up for sale in Co Carlow, for example, so when it does, people buy it. Demand has been strong from the UK and there has been interest from the US. Substantial buyers looking for stud farms are a thing of the past - people want a good house, either contemporary or period, with enough land for three or four mares, within a commute of Dublin."

UK buyers are well represented in the Cork market, where the downturn was less evident. The upper end of the market held firm and anything close to water and in good condition sold well, says Charles McCarthy of Skibbereen. Sales this year included Roaring Water House, a restored period farmhouse in Aughadown, Skibbereen for €1.35 million; Grove House in Castletownsend which fetched over €1 million; and Glebe House in Caheragh which achieved €900,000.

North Cork agent Michael H Daniels of Mallow had a good year overall, with prices increasing in the early part of 2007, then reaching a stand-off in August, when confidence disappeared from the market. Sales included Killinure Castle in Dundrum, Co Tipperary which was sold for around €2.5 million; and Coole Abbey in Fermoy which went for a similar amount.

A London buyer paid €4 million for The Rocket House, on the water's edge at Castletownsend, while film star Oliver Reed's house at Churchtown, Co Cork sold for €1 million.

"Returning expats and UK buyers were a large part of the market this year and there was significant US interest at the top end of the market. "An Irish country house is still seen as a good investment and people will pay a premium for houses in good order," says Daniels.

An upsurge in interest from UK buyers cushioned the country house market in 2007, says Robert Ganly of Knight Frank Ganly Walters, adding that UK enquiries constituted up to 20 per cent of total enquiries this year and they were actively bidding on properties.

There are two reasons for this, says Robert Ganly. "Favourable sterling-to-euro rates certainly helped, but a significant factor was the high cost of private education in the UK.

"Irish people wanting to return from abroad to educate their children here will save 40 per cent of the cost by educating their children in Irish private schools.

"Another key issue was access to a good airport. Most people now have an integrated home office and they can commute to the UK from Galway and Cork, sometimes faster than getting to Dublin."

Prices have eased, continues Ganly, but not to the same extent as in the Dublin market where a 10 to 20 per cent downturn has been reported. The country house market has become more realistic, but good houses will always sell well and lack of supply will keep the buyer keen, he adds.

The general slow-down did affect country house sales, but this market is more robust because of overseas interest, says David Ashmore of Savills HOK, who achieved over €9 million for Riversdale House and 105 acres at Redcross, Co Wicklow, in late summer.

A fairly strong Irish market and increasing UK interest augurs well for 2008, says Ashmore.

Hollyhill, a stud farm with Liffey frontage in Brannockstown, Co Kildare attracted a number of serious bidders when it came on the market with Jordan Estates in September.

The granite period-style house had been transported from Co Wicklow and rebuilt on the site around 1950. It also came with 60 acres of good grazing land. Neighbours included the prestigious Aga Khan and Harristown studs.

Tony O'Reilly was the eventual buyer at €7.4 million, which was €2.4 million over the €5 million guide.

Around the same time, Jordan Estates sold Ardagh Demesne, a former Sisters of Mercy convent on 200 acres near Longford town, for €5.25 million.

"The country house market is not as bad as the general residential market, but vendors will still have to 'price to sell' in the coming season," says Paddy Jordan.

Land was a huge talking point in 2007, says Ian McCarthy of Sherry FitzGerald, with energetic sales and strong prices achieved for anything with a viable farm.

Tenders are closing tomorrow for a 1,400-acre farm in The Slobs near Wexford town, for sale through Sherry FitzGerald and UK agency Strutt & Parker. Interest is keen and the guide of €8 million should be exceeded on the day.

The upsurge of interest in agricultural land could be related to the change in farming, with milk farmers doing particularly well, says Ian McCarthy.

"Bigger farms built up as commercial enterprises are marching ahead in the UK and the same thing is affecting sales of big country houses in Ireland. Land has certainly helped the country house market."