Land sales slowed down in the second half of 2016 after racing ahead in the first half the year according to new research from agent Cushman & Wakefield.
This meant turnover in the development land market was down 5 per cent on 2015’s total of €721 million.
However, if the indirect sale of Argentum Property’s 164.5 acres of residential land across six sites for €105.6 million to Cairn Homes is included in the figures, the overall value of development land sales reached €792 million in 2016.
Meanwhile, the number of land transactions in 2016 was up 15 per cent on 2015 at 180 while €220 million worth of development land was sale agreed at the end of December 2016.
Cushman & Wakefield says, however, that 2016 was a “relatively strong year” in the greater Dublin area for land sales where just over 130 transactions were recorded for a total of €640 million.
Commuter belt
The key sale in Dublin during the year was of 18 acres at The Park in Carrickmines for more than €45 million. On the commuter belt, the standout transaction was 128 acres across six sites in the Albany portfolio in Kildare and Dublin for €44.7 million.
"There are currently two distinct categories of land in the Dublin and commuter belt market where demand is increasing," says Rory Breen, associate director at Cushman & Wakefield.
"These are large residential zoned sites around the M50 and beyond, capable of accommodating 100-plus houses, and smaller infill schemes with planning in place for 10-50 houses within the M50.
“Supply and transaction activity in both categories was constrained at the end of 2016, with most of the best scale sites now traded and held by a small number of market participants. Nama and receivers continue to hold larger sites for potential direct or joint venture residential development.”
Cushman & Wakefield suggests that the availability of well-located, ready-to-go residential development land “remains a persistent problem” while the Government’s rent caps in certain markets “might curb investor interest”.
