New homes market bounces back after Budget

The new homes market in the greater Dublin area shows all the signs of bouncing back following the introduction of reliefs for residential investors in last week's budget.

The measures have not only brought a considerable number of investors back into the market, but have encouraged many first-time buyers to book homes still under construction. Several housebuilders have brought forward development work on sites, in the expectation that sales will continue to pick up when the new selling season opens after Christmas.

The reintroduction of mortage interest relief for investors and the reduction of stamp duty has already sparked off renewed interest in second-hand apartments, which have been hard to shift over the past year. The reliefs have also allowed developers to wrap up sales on many sites where a handful of units were still available.

The overall budgetary measures should help to stave off a recession in the property industry, which had worsened since the events in New York on September 11th.

Gerry Whelan of Ballymore said yesterday that since the budget, he had taken deposits on 14 new three-bedroom homes being built at Oak Glade on the edge of Naas town, Co Kildare.

The first batch of three and four-bed semis will be ready for occupation from March. Prices range from £175,000 (€220,200) for the three-beds and from £185,000 (€234,90) for the four-beds.

Ballymore has sold all but the final three two-bedroom apartments on an adjoining site. These two-bedroom, 750 sq ft units are available from £139,950 (€177,699).

Ken MacDonald of agents Hooke and MacDonald confirmed that there had been a flood of inquiries both from investors and first-time buyers since the budget.

He said the corner had been turned in the residential market and with mortgage interest rates at a historically low level, he expected the new homes market to take off in the new year.

Although new housing starts nationally have fallen by 18 per cent over the past year, Mr MacDonald said this trend would be reversed in the new year and in time this should bring moderation to rental levels.