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 Crescent forms part of a major new residential area, called Rathborne, that sits between the Tolka Valley and the Royal Canal beside Ashtown train station in north-west Dublin.
The scheme is being developed by a number of companies, including Capel Developments, Ballymore and Castlethorn Construction.
When complete, the 100-acre site close to the Phoenix Park's Ashtown Gate, will incorporate some 4,000 new homes.
Capel has already sold 250 units at the scheme but has an additional 150 homes to sell.
The company recently acquired an additional 12 acres at Ashtown, beside the district centre.
The site for 500 apartments was bought from Castlethorn Construction for around €70 million last September.
Designed by O'Mahony Pike Architects, The Crescent comprises 72 apartments laid out over four blocks.
The scheme has a prime slot in the overall Ashtown scheme overlooking a five-acre park and the canal - it's a five-minute walk to the train station and the district centre where a new Superquinn has recently opened for business.
The two-bedroom apartments come in two styles and two sizes - 78sq m (840sq ft) and an 80sq m (860sq ft) unit which has two balconies off the livingroom.
The homes are well thought out and have lots of storage. The standard of finish is above average with recessed lighting in living areas, a high gloss Nolan fitted kitchen with butcher-block style worktop and kitchen appliances.
Bathrooms have porcelain tiles, heated towel rails, large mirrors and mood lighting. The price includes one underground car-parking space.
A big selling point at The Crescent is its proximity to the new Ashtown train station, which is a 15-minute train ride from Dublin city centre.
The Phoenix Park is in walking distance and Castleknock village is a short drive away.
