Dundrum: €3m: A period house on 1.6 acres in Dundrum has permission for eight townhouses in its grounds. Orna Mulcahy reports

Housebuilders will almost certainly be to the fore when Ganly Walters auctions Orchardton, a Victorian house on 1.6 acres at Sweetmount Avenue in Dundrum, Dublin 14. Robert Ganly is guiding €3 million ahead of the auction on May 26th.

With planning permission for eight two-bedroom townhouses in the grounds, the property will be of immense interest to a range of small and medium builders who are constantly seeking ready-to-go sites, while they await planning permission for larger schemes. Cash rich at the moment, after several boom years of housebuilding, builders are always attracted to infill development opportunities in good suburban locations.

Orchardton is an exceptionally appealing property because the new townhouses can be developed on what is a mature site without impinging too much on the privacy and integrity of the main house. The property, in a quiet cul-de-sac off Sweetmount Road, has two entrances, one to the house and another to the rear of the property. Its proximity to Dundrum, with the Luas and new town centre on the way, make it even more attractive from a development point of view.

The house, which is semi-detached to the rear, dates from the 1860s and is built on what is thought to have been the original Hughes Dairies farmland. The house itself has a bit of history in its original kitchen downstairs, where a cake containing a screwdriver is said to have been made to send to de Valera in prison.

It's currently owned by a fashion retailer and his family, who have lived here for over 20 years. It's a handsome two-storey villa with elegant reception rooms overlooking the sweeping lawn in front of the house, and a large conservatory that runs across the back of the house.

The front door opens into a perfectly square hallway with the drawingroom and diningroom opening off on either side. An inner hallway has the same lofty proportions and leads to the main bedroom with its large en suite dressingroom, bathroom and a study, previously a child's bedroom. The kitchen is also at this level and it's a lovely bright room with Danish kitchen units that are 20 years old but look fresh out of the IKEA range. Beyond the kitchen is the large conservatory overlooking the back garden. Downstairs there are three further bedrooms, a large utility room and a sittingroom. There is also a self-contained one-bedroom flat, which is accessed from the side of the house and has recently been refurbished.