Land sales slow down in second half of 2016 after strong start

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.

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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”.