Change to Central Bank lending restrictions see key sites back on market

Tails are up again in the housing and land development market in marketable Munster locations, perhaps given an extra fillip too by the changes announced last week by the Central Bank on lending restriction to First Time Buyers, coming on top of 2017’s ‘Help to Buy’ scheme.

The pick up in sentiment and demand for ready-to-go house building sites is remarked upon by Savills Cork, who bring sites in county towns Mallow and Bandon for sale, and which could fetch over €1.5m between them.

They come to market as a ‘best bids’ deadline passes this week for 13 sites at Gort Fada, Glounthaune, a very clean buy with FPP for 12 semis and one detached home. 

It will complete the well-regarded Lane Brothers development, near the commuter rail station. Guide was €575,000, and very keen interest was signalled from a number of bidders. 

It got dozens of inquiries, and may top €700,000 when concluded.

Also ‘sale agreed’ after a best bids scenario is a portion of the former John Fleming Innishannon site Ard Aoibhinn, where nine sites, with bases down, was offered. It’s understood to be making about €750,000, after interest from up to a dozen builders.

Meanwhile, new to market at values per site ‘stand’ of a fraction of that type of cost is a site of 11.5 acres at Spa Glen, Mallow.

Here, James O’Donovan and Denis O’Donoghue of Savills guide at €950,000 for land with a lapsed planning for 130 units, previously associated with WK O’Connor of Killarney who developed the adjacent HazelBrooke scheme.

Even if a lower density on a new planning is reduced to about 100 homes, it still equates to less than €10,000 per site.

“It’s certain to attract the interest of developers and investors alike, given its affordable asking price, and positive zoning history,” say the agents, acting for receivers Ernst & Young.

Location-wise, Spa Glen is almost edge of town, c 2.5 kms north east of Mallow town centre. It’s suited to a large scale development, and selling agent Denis O’Donoghue notes that “house prices in Mallow have increased by 12% over the past 12 months. This is an excellent opportunity to acquire a site with the potential to deliver a large volume of houses in response to the current shortage that exists both nationally and locally.”

Meanwhile, in Bandon, acting for receivers Deloitte, Savills are selling 9.6 acres with FPP for 58 units at a site on the north western fringe of the town, and Convent Hill.

Previously associated with the Coolfadda Group, it will suit a medium-scale residential development with frontage to Convent Hill and the Dunmanway Road.

Planning is for 58 units, including detached, semi-detached and terraced homes, and guide price is €450/500,000: it equates to c €8,000 per house stand.

“Bandon is seen as one of the most affordable residential locations in the Cork commuter belt,” says James O’Donovan, adding that house prices are growing now, with new three-bed semis at the neighbouring Inis Alainn Curraclough development priced at €212,000.

This Tannery/Convent Hill site comes with Part V requirements fully satisfied “and the introduction of the Help to Buy Scheme and the Central Bank’s decision last week to ease the mortgage regulations for FTBs is sure to boost productivity in the new homes sector,” Mr O’Donovan states.

Details: Savills 021-4271371

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