Bumper year for Ireland's country house  market

2021 the strongest year for high end country home sales since 2006, says specialist Michael H Daniels

Munster's top seller in '21 was Raffeen House, Scilly,  Kinsale making close to its €4.9m guide after just four months on the market

AGAINST the backdrop of huge uncertainty caused by the Covid pandemic, 2021 has been a quite exceptional year which saw the high levels of activity in 2020 continue and manifest into completed deals for older and recent offerings alike.

Abbeyleix Estate made close to €20m, bought by Stripe co-founder John Collison from Limerick

A pool of wealth built up by Irish entrepreneurs based here and abroad, coupled to a resilient post-Brexit economic performance, low financing costs and negative deposit interest rates, coinciding with a limited supply, drove the market.

Last year’s review predicted a bumper year and this has indeed come to pass with at least eight properties sold during the year in the province at or above the €2m level.

2021 must contend as perhaps the strongest year for the country market since the 2006 bust in terms of sales completed and sales exceeding the €1m mark.

Rocket House Castletownbere was among West Cork's standard bearers, making €2.5 million

The country house is very much back in vogue, given the uncertainties of living and working through the Covid era, with purchasers continuing to seek out self-contained properties within their own grounds and with generous accommodation.

Irish nationals based here and overseas are increasingly dominant and competition for accurately priced offerings is close to Celtic Tiger levels, encouraged by a renewed confidence in the market as a solid investment, underwritten by the ongoing shortage of supply. A low rate of stamp duty coupled to a relatively benign property tax continues to assist the market.

Parochial House Cannon's Cross Inniscarra made €1.5m

New stock entering the market in 2021 was again scarce and those pitched at realistic levels performed well, meeting with solid interest. Journey’s End, Crookhaven, initially guided at €850,000 is listed in the Price Register at a 41% improvement at €1.20m. The Parochial House, Inniscarra, made in excess of €1.5m after launching at €1.35m whilst Annesgrove, Aherla launched in September at €2.50m is reported to have achieved €2.90m at private auction with six bidders.

Ngong, at Kilnagleary, Carrigaline, made c €1.75m

In Kilkenny, the former home of the Smithwick family, Kilcreene Lodge, launched at €3.25m in June and appeared in the price register just four months later at €4.25m, a premium of over 30%.

The highlight of the year was the sale of Abbey Leix Estate, Co Laois, reportedly selling close to its guide price of €20m, to Limerick tech billionaire John Collison, co-founder of Stripe.

Also catching the eye was the sale of Knockdrin Castle in Co Westmeath, believed to have fetched over €10m.

Both properties were purchased by Irish tech entrepreneurs and served to underline the strength of the super-prime market and the home grown buyer at this level.

The sale of Abbey Leix illustrates a changing dynamic in the sector, closing in under two years close to the initial guide price, whereas many of the year’s other top sales had endured a much longer wait and significant reductions in price.

A notable entrant in September, to test the Kinsale market, was Raffeen, guided at €4.9m, and selling quickly, pre-Christmas, for close to the guide to an overseas buyer.

Elsewhere around the province, West Cork again took top spots in Co. Cork with the Liss Ard Estate, Skibbereen, selling for a reported €3.50m to US buyers.

Journeys End, Crookhaven made 50% over its guide, selling for €1.2m

Also in West Cork, sales included The Rocket House and Tally Ho, Castletownshend, fetching €2.5m and €1.4m, Rathmore, Baltimore, at €1.7m, or €2m including its extra grounds, Glaissin Alainn, Ballydehob and Journey’s End, Crookhaven €1.2m.

Gardens at Rathmore,  Baltimore, which made €2m in total on its grounds 

Elsewhere in the county, Annesgrove (Aherla), Ileclash House (Fermoy), Walton Court (Oysterhaven) and Rathpeacon House (Blarney) are all believed to have found buyers at above €2m whilst Ngong and Ravenswood House (Carrigaline) achieved €1.75m and €1.1m respectively with The Parochial House (Inniscarra) making in excess of €1.5m and Lissardagh House close to €1m.

Salterbridge House, Cappoquin made c €3.25m, bought by property  veteran Stephen Vernon

In Co. Waterford, the Salterbridge Estate, Cappoquin, was purchased by developer Stephen Vernon of Green Property, close to the guide of €3.25m whilst Ballyin Garden House, Lismore, also cleared the €1m mark. Pouldrew House, Kilmeadan, entered the market late in the year at €1.85m.

In Co. Limerick, Gerry McManus’s Fedamore House with 16 acres sold at in excess of €2.6m (possibly an inter-family transfer)   whilst in Co. Tipperary there was good activity — Tullamaine Castle Stud, Fethard sold, having been initially guided at €4.75m whilst Brookhill, also close to the village, is believed to be sold around the guide of €1.3m with Altavilla, Cahir making €1m.

In north Tipperary, Garrykennedy House, Portroe, is listed as making €1.4m in the register and Riverston, Nenagh, also selling at above the €1m mark. In Co. Clare, Woodfield House made in excess of €1.15m.

2021 brought Joe Biden’s promised offensive on corporation tax and the landmark OECD agreement was signed off in October with a global minimum corporation tax rate of 15% for multinationals with revenues in excess of €750m.

Ileclash,  Fermoy on the River Blackwater made over €2m

According to the EU Tax Observatory, the new regime could net the country an extra €12.5bn going forward.

Looking forward to 2022, given the performance of the market in 2020 and 2021, it is hard to see past another strong performance, although activity may well dip if a shortage of supply continues.

Whilst the economy has shown resilience in the face of the pandemic, the Omicron variant has shown how quickly the picture can change.

2020 had brought concerns over negative inflation, but positive inflation is now a global problem with tough decisions on the horizon for central banks, as they struggle to contain inflationary pressures.

There is the possibility of borrowing costs rising quickly next year, for the first time in a 10-year period of exceptionally low interest rates.

Possible macro events that may come into play are the triggering of Article 16, the fallout and contagion risk from Chinese property giant Evergrande and conflict in eastern Europe.

• Michael Daniels is a country property specialist based in Fermoy, Cork. 2021 marks the 25th anniversary of Michel H Daniels & Co.