New Homes/Review:Strong sales and record completions ended in a slowdown in sales, writes Kate McMorrow

This was a roller-coaster year for the new homes market with yet another record in completion levels expected by the end of 2006. Over 90,000 units have been built countrywide so far this year, at least 20,000 of these in the Dublin area, where demand is strongest.

However, sales of new homes saw the soft landing, compared with the second-hand market which plummeted in the second half of the year. Interest rate hikes and stamp duty uncertainty affected all aspects of the market.

Apart from the welcome price stability, building specification has reached new heights in the past few years, with the latest technology and designer fittings now standard features in even the average new homes scheme.

The year performed "like two halves of a football game", says Ronan O'Driscoll, new homes director of Hamilton Osborne King - buoyant at the beginning of the year and sluggish in the second part.

"It was quite an outstanding year in terms of sales in the first quarter, dominated by successful launches. Later on in the year, anything that bucked the trend with keen prices sold well," adds O'Driscoll, recalling Albany Homes's Clare Village in Balgriffen, where 200 good-sized apartments priced from €310,000, were snapped up by first-time buyers in September/October . "My best launch ever in almost 20 years in property."

Interest rate increases and uncertainty over the Budget did have an affect on affordability in the second half of the year, agrees Ross McParland, managing director of Sherry FitzGerald New Homes. A shortage of family houses was a noticeable trend, says McParland.

"There was an incredible momentum early in 2006 and prices went up in leaps and bounds in the first three months - by around 12 per cent - but didn't budge in September. Buyers began sitting on their hands in the latter quarter and business was far less brisk. Buyers are increasingly discerning and are looking for a better product and a higher specification," he adds.

The promise of a top spec was one of the selling points for Sherry FitzGerald New Homes at swish Beacon South Quarter. This is the first of a batch of apartment developments in Sandyford Business Park which is fast becoming a desirable residential location.

A total of 500 apartments have sold from plans at Beacon South Quarter to date with a further batch coming on stream next March.

Another Sandyford scheme, Vantage by John Lally's company Lalco, was also an immediate sellout, with the attraction being its impressive architecture and proximity to the Luas. Nearly 250 units have been sold between Sherry FitzGerald New Homes and joint agents Hooke & MacDonald. A new phase will be released in 2007.

One of the biggest sites in Dublin, The Coast, at the former Baldoyle racecourse in Baldoyle has sold steadily during the year, with the majority of the apartments and houses going to first-time buyers. The fact that a new train station is being built on the site is a major attraction.

However, a sure sign of a market slowdown in recent weeks was the lack of queues at Ellier's new Dalriada development on Ballycullen Road, Knocklyon, last month. Houses with high-spec interiors and reasonable prices did sell steadily but - unusual for an Ellier scheme - there are still a few houses to be bought. Previous phases of this development had queues for up to eight days.

New homes specialists Hooke & MacDonald had a buoyant spring season and kept launching throughout the autumn. Overall, the year was "the best yet", according to Ken MacDonald, who says the lack of price increases gave first-time buyers an opportunity to get into the market. Rockbrook in Sandyford and Carrington in Santry Demesne were among its best schemes. Section 23 schemes sold strongly in autumn, with Tallaght Cross the best: 230 apartments sold last month, mainly to investors.

This year was marked by the launch of Adamstown, a new town near Lucan in west Dublin which was part of the Government's Strategic Development Zones (SDZs), designed to fast-track planning for starter homes.

The concept of providing housing in tandem with infrastructure encouraged confidence and buyers queued for two days before the launch. That Adamstown was flagged as a family location with schools, playgrounds, parks and a train station in the pipeline was an added attraction.

Gunne New Homes got the new town off to a flying start with 635 sales within days. First-time buyers counted for 55 per cent of sales, 25 per cent were owners trading up and the balance sold to investors. Almost 70 per cent were under the age of 40. Three-quarters of buyers were indigenous Irish and the remainder were non-nationals, a significant factor in new homes sales.

The influence of immigrants on the Irish house market cannot be underestimated, says Keith Lowe of Douglas Newman Good, who handled the successful second phase at Adamstown on behalf of Maplewood Homes in October, selling 200 units so far. Other successes for DNG include Carrickmines Green and The Belfry at Citywest.

"The fundamentals are still good, with interest rates around 3.5 per cent - UK agents can't believe how buoyant it still is here," says Lowe.

There are immigrants of a different kind in north Co Wicklow, where Dubliners are flocking to buy expensive family houses close to the N11.

Those developments which managed to obtain an exemption to the county council ruling that buyers had to be living or working in Co Wicklow were particularly fortunate.

Hassett Estate Agents sold eight of the 10 four-bedroom detached houses for sale at The Nurseries in Delgany. Prices from €1.625 to €2 million failed to deter Dubliners, attracted by the high-spec fitout and relative value beyond the city suburbs.

Around the same time, Lennox Estates sold out in the launch weekend at Delgany Gate, where houses were selling for €1.5 million-plus.

The same agency sold four very glamorous detached houses at The Vale, Rocky Valley, Kilmacanogue, in one weekend, at prices from €2.8-€3.5million.