20th August (Issue 210)
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
Dún Laoghaire Rathdown County Council The first estate of affordable homes to be built by Dún Laoghaire Rathdown County Council in more than a decade is to get under way at a site south of Foxrock. The council plans to build almost 120 social and affordable houses and apartments at Ballyogan Court, on a 2.4-hectare site left over from the construction of the M50 motorway. The Department of Housing this month granted just over €2 million in infrastructure funding for the site to allow 52 of the homes to be used for affordable housing. This number could be increased as the council says the final breakdown between social and affordable homes will be based on tender prices. The Irish Times, 19th August
Donabate, North Dublin An Bord Pleanála has rejected an application by Glenveagh Homes for a large extension to a €75 million residential development at Donabate in north Dublin. The appeals board’s inspector recommended that the 174 apartments should get the green light on the southern edge of Donabate located 300m from the local railway station. However, the recommendation was overruled by the board. The board stated that the proposed development of 174 apartments, due to its blanket approach to height, campus-style building layout and dominance of car-parking, did not represent a satisfactory urban design response for the site. The apartments were to replace 35 houses and 62 apartments already permitted for the site. The Irish Times, 15th August
South Link Road, Cork City It is understood that fast track planning permission is being sought this week for a 17-storey apartment tower on Cork city’s South Link Road. The application for 118 apartments on a 0.8 acre site aimed at the Build to Rent sector will be made directly to An Bord Pleanála. Amenities will include a concierge service, a gym, open gardens and bicycle parking, but no car parking provision is being made. The Irish Examiner, 14th August
Residential Property Prices Data released on Wednesday from the Central Statistics Office (CSO) outlines that residential property prices increased by 2% nationally in the year to June 2019. This compares with an increase of 2.6% in the year to May and an increase of 11.9% in the twelve months to June 2018. In Dublin, residential property prices rose by 0.1% in the year to June 2019. Residential property prices in Ireland excluding Dublin were 3.9% higher in the year to June 2019, with house prices up by 3.6% and apartments up by 6.1%. Overall, the national index is 18.0% lower than its highest level in 2007. CSO Report 14thAugust
Beacon South Quarter, Sandyford 18 IRES Reit has confirmed that it has spent almost €1 million remedying building defects at the Beacon South Quarter development in Sandyford where it owns more than 225 of the 880 apartments. Dublin Fire Brigade had warned the owners of the apartments that they could face legal action if they did not undertake the fire-safety improvement works in their homes. The total bill for the remediation work came to almost €10 million. The Irish Times, 13th August
43-44 Clarendon Street, Dublin 2 An Bord Pleanála has refused planning permission to Friends First Life Assurance DAC for the temporary use of six apartments at 43-44 Clarendon Street, off Grafton Street, for short-term letting. The board refused permission, stating that permission would be contrary to the city development plan, which recognises residential units as a scarce resource that needs to be managed in a sustainable manner so that the housing needs of the city are met. Friends First argued that “it is compelled to make this appeal for reason of the apparent absence of any method to regularise, under planning statutes, a short tenure of rental for houses and apartments.” The council had refused planning permission earlier this year after its planner stated that permission would result “in an unwanted precedent for similar development in the area, which may then result in the further unacceptable loss of long-term residential rental properties in the locality.” The Irish Times, 13th August
OFFICE
A Cushman & Wakefield Report on the Cork Office Market has outlined that take up reached more than 237,000 sq.ft. at the end of Q2 2019. Furthermore, the vacancy rate fell to 7.9% akin to levels last seen in 2005-2006. The report states that there was 550,000 sq.ft. of office accommodation under construction and that the majority of this was located in the city centre. Cushman & Wakefield Report Cork Office Market Q2 2019
INDUSTRIAL
A Cushman & Wakefield Report on the Cork Industrial Market highlighted that Q2 was a relatively strong period. Transaction activity totalled 93,600 sq.ft. across 14 deals, making it the strongest second quarter since Q2 2015. Leasehold transactions accounted for 90% of activity in Q2 2019. The vacancy rate now stands at 5.0% which is significantly lower than the 9.5% vacancy rate witnessed at the same point in 2018. Cushman & Wakefield Report Cork Industrial Market Q2 2019
Dublin Inland Port Dublin Port Company has secured planning approval for the development of the next phase of its inland port near Dublin Airport. The latest stage of the inland port extending over 4 hectares will include a site with capacity to store more than 2,000 shipping containers. The company believes that developments at Dublin Inland Port and at other locations close to the M50 can better meet the requirements for port-related but non-core activities including logistics services. It also envisages that the inland port might eventually lead to a reduction in vehicle movements in the port tunnel, and also at the port. The Irish Independent, 20thAugust
HOTELS / LICENSED PREMISES
A Cushman & Wakefield Report on the Irish Hotel Market outlines that H1 2019 was a particularly strong period with ten hotels transacted, totalling €172m. This compares to €42.8m across six hotels in the same period in 2018. The two largest sales arose in Co. Wicklow where the 5-star Powerscourt Estate was acquired by the MHL Group for approximately €50m. The second deal saw the the Neville Hotel Group purchasing 5-star Druids Glen Hotel & Golf Resort at a reported €45m. Cushman & Wakefield Report Irish Hotel Market Q2 2019
OTHER
Henderson Park Capital The Irish Times understands that UK property company Henderson Park Capital who recently agreed to the purchase of the Green Reit portfolio for €1.34 billion will look to dispose of up to 50% of the portfolio once it secures ownership. The Irish Times, 14th August
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