A 4,080 sq ft Co Offaly house bought for €3.3 million in a bidding battle at the height of the property boom is now back on the market for €395,000.

Situated on 2.32 acres of land on the Clonminch Road in Tullamore, Co Offaly, the five-bedroom house was initially purchased in 2006 by developers intent on building a 60-bed nursing home.

Property Partners Richard Cleary in Tullamore, Co Offaly, were recently selected as sole agents for the house by the appointed receiver, Colliers International. It is now advertising the house for €395,000 – an 87 per cent reduction on the sale price.

“It might seem crazy now,” said Richard Cleary, “but that was just the market at the time.” The buyers had plans to take advantage of generous Government tax breaks on offer for nursing home developments when they bought the house in late 2006. Permission was subsequently granted for a 60-bed nursing home at the site.

“Tax breaks for nursing homes ceased in 2009, but seeing as the site has been discounted by so much, coupled with the fall in stamp duty from 9 per cent to 1 per cent, it may still appeal to nursing home operators,” Cleary said.

As the house has remained unoccupied for some time it is in need of refurbishment. Cleary believes the value of development land in the area has now dropped to just one-tenth of its peak price. Citing another local example, Cleary said: “There was 30 acres sold outside Tullamore. It sold for €3 million in 2006 and the farmer that sold it for €3 million just bought it back for €300,000.”