New Homes: The experts promised us a more competitive market and easing prices in 2003. Buyers would be able to pick and choose and overnight queues would be a distant memory, writes Kate McMorrow

Did it happen as predicted? Not completely, although supply was good and buyers were able to shop around for the best value. Price slowed, but there was no sign of the significant downturn first-time buyers were hoping for. In fact, as the year progressed, agents were reporting a bumper year for sales; almost as good as 2002 which was exceptionally strong. Although a rare sight, queues did form when something rather special was launched.

Many of the forecasts of doom and gloom were made by stockbrokers with vested interests in undermining the property market, says Ken MacDonald of Hooke & MacDonald. "They were trying to get people back into stocks and shares; these so-called reports were severely flawed in terms of their basic research," he says.

Price moderation in new homes contrasted with the second-hand market, where some locations experienced double-digit inflation. The market was driven by first-time buyers, who accounted for 60 per cent of all new homes sales in the Dublin area and 55 per cent outside the capital. Interest rates at an all-time low cushioned the absence of grants for first-time buyers.

With the Luas construction causing traffic chaos, a move closer to the city centre was noticeable, with anything further out than Blanchardstown or Swords slower to move. The competition between developers was a positive thing, compelling builders to raise their game when it came to standard of finish.

The Luas changed peoples perception of some locations, with Dundrum and Santry experiencing an upsurge of interest.

Some upmarket schemes, such as St Anne's in Dublin 6, almost sold out during the construction phase. Spectacular townhouses with high-spec interiors had no problem achieving over €1 million with the HOK agency.

New phases of Bushy Park in Terenure and the launch of Loreto Abbey in Rathfarnham, both handled by Hooke & MacDonald, went well. Rob's Wall in Malahide, Belarmine in Stepaside, Gallery Quay on Grand Canal Basin and Park West off the Naas Road were huge successes for Sherry FitzGerald.

It was a bumper year for the industry, with 65,000 new homes completed nationwide, says Ross McParland of Sherry FitzGerald New Homes. "Great news for first-time buyers and investors and the building industry deserve tribute for achieving this," he says. "It was also good news for the Exchequer, which took 41 per cent in tax from every house sale. Through direct and indirect taxes, they accumulated €6 to €7 billion on the sales this year."

"Every year, there are reports that the market will slow down," says Ronan O'Driscoll of Hamilton Osborne King. "There was a slight fall-off in the early part of the year, but nothing dramatic. The market was more price-sensitive and people were looking around more."

Those who could afford it opted for new schemes closer to the city, like the huge Rathborne development off the Navan Road. HOK had sold 300 units here within weeks of the launch.

The market was driven by first-time buyers, who accounted for almost 50 per cent of all new homes sales in 2003. This sector took well to apartment and duplex living, perhaps because choice was limited around €250,000, says Martina Dillon of Leahy Property Consultants.

"Anything with a roof terrace was popular and two-bedroom terraces with tiny back gardens were snapped up," she says. Annfield in Castleknock, developed by McInerney and Castlethorn, went particularly well.

City-centre apartment schemes, such as Smithfield, The Gasworks, Clarion Quay and Spencer Dock, were well favoured with investors and first-time couples. These sold from plans, giving buyers time to arrange finance and the hope of increased equity by completion date.

Tax-incentive schemes that offered Section 23 relief were more popular than ever, with the knowledge that next year is likely to be the last. No matter where, they were snapped up.

Douglas Newman Good will be launching Section 23 schemes in The Square, Tallaght and in Clondalkin in the new year. DNG had a positive 2003 with first-time buyers out in numbers in their new schemes.

Gunne also enjoyed a good year, with million-plus developments selling well. This agency is down to the last house at Abington in Malahide and just two millionaire houses are left at The Copse, off Griffith Avenue. "Builders invested heavily in presentation this year. This was an important factor," says Shane Daly of Gunne.

Although around 14,000 new homes were built this year, the demand is estimated at 23,000, leaving a shortfall in the capital which augers well for the 2004 season.

New schemes kicking off the 2004 season include 260 houses and apartments launching through HOK in Sandyford. The same agency will be selling apartments at Feltrim Road, Kinsealy for Albany Homes, prices from €225,000.

Look out for two-bed apartments at Woodbrook, Castleknock and another phase at Tyrellstown, with Leahy Property Consultants. Check out Hooke & MacDonald's marketing suite on the north quays for the huge Spencer Dock development. Sherry FitzGerald New Homes is keeping a couple of spectacular new schemes under wraps, to be announced in early January.