The Dublin apartment market has never been stronger, judging by sales at St James's Wood, a new development on the South Circular Road last weekend. Agents Hooke & MacDonald netted £20 million in sales over three days, selling 106 of the 119 apartments. Two-bedroom apartments made between £180,000 and £215,000, while three-bedroom units fetched from £230,000 to £265,000. The agents estimate that more than 1,500 people lined up to see the apartments, most of them first-time buyers. Not surprisingly, 20 per cent of the homes were bought by investors who can expect to let them at £1,000 to £1,200 per month. Agencies letting apartments in the city centre are reporting serious shortages of apartments now that the students have returned to town. In some cases, up to 50 people have queued to rent individual units.

Cosgrave Homes, who built St James's Wood, like a number of other housebuilders are taking an increasing role in the commercial property market. For some, the final straw was the Government's decision to grab 20 per of all future residential sites for social and affordable housing.