Thursday, December 6, 2007

Developer drops apartment prices by €100,000

Prices of one and two-bedroom units in a new scheme in Dublin 15 have been cut by over 20 per cent in an effort to attract buyers writes Fiona Tyrrell

In a move that could trigger a significant adjustment in new homes prices across the market, a Dublin developer is offering reductions of up to €100,000 at a scheme in Ashtown, Dublin 15.

Capel Construction has cut prices at The Crescent, Ashtown by between €70,000 and €100,000 - representing a reduction of 17 and 22 per cent respectively.

Twenty-seven two-bedroom apartments at The Crescent go on sale today with prices starting at €335,000 and rising to €360,000. When the same two-bedroom apartments were first launched in October of 2006 by Savills HOK, prices for two-bedroom units were between €405,000 and €460,000.

Discounted prices on a wide number of schemes have been quietly offered to investors for some time, but this is the first time in many years that a developer is publicly advertising reduced prices.

Capel's decision to cut prices is likely to make other developers uncomfortable, particularly those who are building apartments in the same area. However,it is the latest indicator of the dramatic slowdown in the new homes market, which has left many builders with unsold stock on their hands.

It will inevitably lead some revise their prices downwards in the hope of selling them over the coming months.

Capel says that the move "brings affordability back into the housing market" and offers buyers "massive savings".

This, however, will be of little consolation to earlier buyers at The Crescent who now face the prospect of negative equity.

The Irish Times

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