18th August (Issue 260)
Welcome to the Origin Capital Weekly Irish Property Review. This update is designed to provide you with a full recap of the latest property news from the media over the last seven days.
RESIDENTIAL / LAND
Rathmines, Dublin 6 Knight Frank is guiding €1.3 million for a 1,991 sq.ft. (€653 psf) Victorian terraced property at No 7 Ormond Road, Rathmines, Dublin 6. Located between both the Beechwood and Cowper Green Line Luas stops, the property is located towards the Palmerston Road end of Ormond Road. The property comprises 4 bedrooms. The Sunday Business Post, 16th August
New Home Completion Figures Figures from the Central Statistics Office (CSO) show there were 3,290 new dwellings completed between April and the end of June 2020, compared to 4,829 in April-June 2019. This was the first year-on-year decrease since the third quarter of 2013. The number of multi-unit developments fell 34.8% to 1,842, while single dwellings fell 33.8% to 872. The State-wide shutdown of construction sites took its biggest toll in the month of April, when completions were 72.7% lower than they were in April 2019. Just 402 homes were completed in April, less than a quarter of the number of completions in March. The Irish Times, 13th August
Tara St, Dublin 2 The Sunday Business Post is reporting that Ronan Group Real Estate has missed the original deadline set by CIÉ to have “substantial works” started on the 23-storey tower it has planned for Tara Street in Dublin city centre. The missed deadline could potentially open the window for CIÉ to renege on the initial agreement it made with Ronan Group which gave it permission to develop the site. CIÉ’s agreement to lease the site to Ronan Group was signed in August 2015 for an initial term of five years. After the initial five-year term, a 300-year ground lease would take effect if certain criteria were met. The Sunday Business Post, 16th August
Housing Requirements As many as 47,000 houses will have to be built each year for the next five years just to meet demand, according to a new report by property economist Ronan Lyons and industry body Irish Institutional Property (IIP). The analysis suggests the main drivers of housing demand in the coming years will be the natural increase in population, net migration and changes in household size. The report also claims that the supply of new homes is determined by viability, effectively the cost of construction, and not affordability for buyers and that viability is “extremely challenging”, particularly for apartments. The Irish Times, 13th August
Old Mallow Rd, Cork Cork City Council is set to redevelop the former Boland Mills site on the Old Mallow Road. Subject to approval, it will consist of 57 housing units, on a c.1.68-hectare site. Of those, 12 will be two-bedroom two-storey terraced houses and 25 will be three-bedroom two-storey terraced houses. There are also four one-bed apartments and 16 two-bedroom apartments proposed as part of three-storey duplex units included in the proposal. Part 8 planning details for the development have been published by the Council. The Irish Examiner, 14th August
House Prices The figures from the CSO’s latest Residential Property Price Index has indicated that property prices in Dublin are now falling by 0.7% per cent as a result of the coronavirus. The figures show prices nationally rose by just 0.1% in the 12 months to June 2020. The latest official figures also point to a 33% drop in the number of transactions compared with last year. The Irish Times highlight that the latest figures primarily reflect activity before the coronavirus-related shutdown and that it may be several months before the full impact of the Covid-19 pandemic is reflected in headline prices. Overall, the national price index is 17.8% lower than its highest level in 2007. The Irish Times, 18th August
INDUSTRIAL
MIXED-USE
Dawson St, Dublin 2 The Sunday Business Post is reporting that BCP International Property Fund, the developers of a high-profile project on the corner of Dawson Street and Nassau Street in Dublin city centre, have significantly scaled back the retail element of their plan due to the pandemic. They secured permission in 2017 to develop a mixed-use office and retail development on the site, which previously accommodated the House of Ireland store. New plans filed by the developers show that they plan to remove a whole floor of retail space from the project. The first floor, which was due to contain retail units, will now be converted into offices. The Sunday Business Post, 16th August
Parkway Valley, Limerick Limerick City and County Council have granted planning for a development for a Singapore investment company Novelty ICAV, which includes a mix of offices and residential space at the long-derelict Parkway Valley in Limerick. The scheme includes 245 residential units in a series of buildings ranging in height from three to 14 stories, four office blocks totalling 131,987 sq.ft, a 152-bed hotel over four storeys, a two-storey commercial building, two restaurants and a petrol filling station, as well as a three-storey community building, which will provide for community facilities, such as a crèche and a multi-use games area. The scheme also includes a 1.12 hectare public park with walkway and parking. The Irish Examiner, 14th August
OTHER
Yew Grove has reported that 97% of second-quarter rent was collected in the second quarter, with just 1.9% of rents deferred under repayment plans agreed with tenants. It has also collected 98% of third-quarter rents. Yew Grove said its portfolio was now valued at €141.1 million, reflecting an annualised rent roll of €10.4 million. This compares with a €115.8 million valuation at the end of 2019. Yew Grove have noted that their annualised rent roll increased to €11.1 million at the end of June 2020. The Irish property trust predominantly invests in offices and industrial holdings outside Dublin’s central business district. The Irish Times, 14th August
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