Falling prices outside Dublin entice incentives

With property price realism sweeping the country, spare a thought for beleaguered builders in many locations outside the greater Dublin area who are experiencing difficulties because of the current slow-down in sales.

All this spells good news for buyers, who can expect to find better value down the country than heretofore. In many instances, at least £5,000 has been shaved off the price of a three-bedroom semi.

Stiffer competition for fewer buyers means incentives such as Aga cookers and expensive fittings are becoming commonplace in the larger homes. Even some of the cheaper homes come with built-in electrical equipment and high quality trimmings.

Developments in cities like Kilkenny and in larger towns continue to hold up, where the infrastructure is good and there are enough cultural activities to satisfy even the most demanding families. Even here, prices are now pitched at a realistic level to attract commuters.

In Kilkenny last weekend, Linntown Hall - a new scheme of three-bedroom townhouses launched by Leahy Property Consultants - notched up 37 sales on opening day, mainly because of their £95,000 price tags. About 40 per cent of the sales were to locals, the remainder went to Dublin buyers, says Gerry Leahy. adding that there was an exceptional number of single purchasers.

"Cities like Kilkenny and good towns such as Kells, Portlaoise and Tullamore will still do well once the price is right," he forecasts.

Local demand is undoubtedly keeping the country market simmering and anything with added value is selling well. Dublin buyers are in evidence - but only just - at G&K's upmarket Castlemartin scheme across the road from Castlemartin Stud in Kilcullen, Co Kildare.

Sales are encouraging despite the down-turn, according to Andrew Nolan of joint selling agent Nolan & Brophy, with the bulk of deposits coming from people living in Naas and surrounding areas. With a standard Aga and huge kitchen and tiling allowances, value for money was the deciding factor for buyers, he says.

At Fintan Sullivan's launch of Bryanstown Manor in Drogheda, realistic prices undoubtedly helped sales. The success of the scheme was, says Sullivan, a benchmark for prices in the Drogheda area.

"We sold two-bed apartments for £110,000 and three-bedroom semis for £130,000 and everything sold out.

"They were levelled at about £5,000 less than similar developments in the town. Before this, prices had been climbing and climbing and the average three-bedroom semi had gone over £130,000. Now they've come back to £127,000 and people are buying."

Down Mullingar way, the fall-off in Dublin buyers is put down to a more vulnerable Dublin market and at least one local agent has experienced cancellations due to this factor. Property Partners McDonnell, who handle a sizable proportion of new property in the town, agrees that the bulk of recent sales are to people in the Midlands area.

"Prices haven't risen since before Christmas, which means a net fall in prices," says David McDonnell. "You can still buy three-bedroom semis at Abbeylands and Ashfield for £99,000. Edenderry and Rochfortbridge have been more vulnerable, but we recently sold six three-bedroom houses there for £96,950."

Nearer home, despite the slow down in sales, houses are selling steadily. Again, its all down to good value relative to the city, with four-bedroom semis in Navan costing from £145,000 in one Ross McParland scheme. The same agent is selling three-bedroom semis in Mountmellick for £93,000, many to commuters.

"There's a huge pool of people with no particular affinity with a place, just looking for a good product at a good price," says Eoin O'Neill of Ross McParland - putting it in a nutshell.