Spotlight on Ireland generated property country market confidence which will continue

The last few years have been solid for sales of large properties in the country market and is likely to carry on into 2025, writes Michael Daniels

Waterford's Fortwilliam Estate is selling in lots

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THIS was another solid year, which continued a run stretching back to the pandemic. Country agents were more than pleasantly surprised in 2020 when the pandemic energised the market which then produced the best years since the Celtic Tiger left these shores almost 20 years ago.

This was the year that brought the stand-out deal of the new millennium so far, with the off-market sale of the Ballynatray Estate, Youghal, closing early in the year for a figure reportedly in the €35m plus region. A flood of national and international press and internet coverage ensued, which focused a warm spotlight on the country market here, which will generate confidence for years to come.

The purchaser of the 850-acre estate, set in a spectacular position overlooking a curve in the river Blackwater, was widely reported as Sir James Dyson, the billionaire British inventor and industrialist and the deal is believed to have represented the highest ever residential sale recorded in the country.

The Munster property now holds an Irish price record for a private house or estate: greater than the €20m paid by Stripe founder, Irish billionaire John Collison, for the Abbeyleix Estate on 1,100 acres in 2022, and more than US billionaire John Malone paid for Tony O’Reilly’s Castlemartin Estate at Kilcullen, Kildare, with 750 acres — sold for €29m. Also, more than last year’s sale of the €20m-plus Barne Estate, Clonmel, currently held up in litigation with a decision set for March as to whom the buyer will be.

Dowth hall

Other super-prime deals in excess of €10m were however thin on the ground nationally with Dowth Hall, Co Meath,
believed to be the next most valuable sale at a price believed to be at €11m plus, although yet to appear on the Property Price Register.

Around the province, the coastal market continued to thrive with ten €1m plus sales recorded on the register in and around Kinsale alone, together with a further ten €1m plus sales in West Cork. In Kinsale, Over Yonder went close to €3m whilst US industrialist, James Berwind, is reported to have added to his portfolio in and around the town with the purchase of Seaspray at €5.5m and Valley View at €5m following on from the purchase of Georgian villa, Sprayfield in Sandycove, last year for a reported €4.5m.

In west Cork, Tir na Nóg made €2.25m in Glandore and to the east of the province the Cuskinny Estate in Cobh realised in excess of €4m whilst Glebe House, Dungarvan, fetched €3.7m and Monatrae House, Youghal, is believed to have made in excess of €1.5m. In Kerry, Westcove House, Caherdaniel, made close to €2m.

Barne Estate Clonmel

Also driving the market were stud sales with another busy year for Tipperary. Killough Castle, Thurles, (535 acres) was reported to have been purchased by John Magnier/Coolmore in the region of €7.5m whilst Rathduff Stud, Cashel, (95 acres) made €2.7m at auction and Landscape Stud, Kilsheelin, (70 acres) is believed to have fetched in the order of €2.5m. Also in the county, Moyaliffe House, Thurles made in the region of €1.6m whilst The Old Convent, in Clogheen, noted for its fine-dining restaurant business changed hands for close to its €1m guide price with new owners Thomas and Michelle Horgan set to run a holistic retreat centre there.

Clogheen The Old Convent Michael H Daniels

Staying inland, theoff-market sale of Kilmacmoy House, Killavullenon the Blackwater is believed to have fetched more than €2m whilst in Limerick, notable activity in Adare saw sales at the Demesne, in the grounds of Adare Manor at €2.3m and at The Woodlands at €1.5m. In Kerry, Clahane, Tralee, made €2.5m and Friars Glen, Muckross, made €1.6m.

Friars Glen Killarney made €1.6 million

Notable entrants to the market were Fortwilliam Estate at Lismore at €12m (390 acres). With the sale of Lots 2 and 3 (175 acres) of the estate agreed and the house is now offered with circa 215 acres at €7m. In north Cork Mount Corbitt House Stud, Churchtown, Mallow, (193 acres) is offered at €4.45m and Waterloo House, Mallow, is guided at €2m (52 acres). Curahoo House, upriver from Kinsale is listed at €2.5m.

It was noticeable that for all the activity, the market in 2024 reflected an increasing price sensitivity, especially for those opportunities further from the coast or city and for those requiring work and/or less energy efficient. Continuing rapid price inflation running at 10% plus per annum in the mainstream residential market should help erode any top heavy pricing.

Looking forward to 2025, it is hard to see any real change in market fortunes. A difficult year of elections in the UK, France, and the US is now over and in our own it would seem like the outgoing government is set to continue, with negotiations taking place as this article is published: the election of a Sinn Féin government would certainly have had an unsettling effect.

As a location, in a largely discretionary market, we are increasingly being seen a safe, stable, and secure open democracy amid the chaos and extremism seen elsewhere in recent years.

The market may well see an increasing number of buyers from Europe and America with political tensions growing on the continent and the escalation of the Russian war in Ukraine. We are geographically well placed away from any overspill of this conflict although, as an island, vulnerable to the dangers of hostile hybrid actions.

Over Yonder, Kinsale

There has certainly been an up-tick in US enquiries in the wake of Trump’s victory although it remains to be seen if this will ultimately reflect in sales. Wealthy foreign and expat buyers will be encouraged by Ballynatray sale, especially those effected by the scrapping of non-dom status in the UK.

With the battle to reduce inflation appearing to have been won in the short/medium term and the subsequent fall in interest rates, buyers may be considering the country market once again for large sums currently on deposit, especially where a good amount of land comes with the property. The land market has held up well over the past decade with very strong prices achieved for prime holdings and this should continue to drive the estate market.

It is too early to see what effect the new ‘mansion tax’ stamp duty levy of 6% on properties above €1.5m, introduced in this year’s budget, will have although it has levelled the playing field somewhat with our nearest neighbours. In the super-prime sector a purchaser considering a property in UK/Northern Ireland will still pay more stamp duty than in the Republic, however, if the purchaser is a non UK resident and already owns a home, a not insignificant surcharge of 7% will kick in.

The economy continues to thrive with a third quarter growth in GDP of 3.5% and government tax coffers forecast to exceed €100bn this year. However, whilst all might seem rosy we are highly dependent on US direct investment and remain vulnerable to the actions of the incoming Trump government at a time where there is a real concern about how the ‘indigenous’ tax base has narrowed to its lowest level since 1980.

The Irish Fiscal Advisory Council’s has continued to warn about our risky reliance on multinational corporate tax surpluses, and has raised concerns about fiscal sustainability.

Michael Daniels is a Fellow of the SCSI and RICS and principal of Michael H Daniels & Co, country property specialists based in Fermoy, Co Cork

www.michaelhdaniels.com