THE STRATEGY of dropping prices for new homes is increasingly paying off, proving that buyers love a bargain.

Last weekend over 400 people showed up at the launch of the latest phase of houses at the long running Dalriada development in Knocklyon, Dublin 16, where prices had been dropped by 20 per cent. Not all were buyers, but no less than 45 of the 50 apartments and houses were sold, some to people who had queued on the site overnight to get the first choice, according to Sherry Fitz-Gerald New Homes.

Prices for two-bed apartments started at €355,000, down from €399,000, while three-bedroom duplex units sold at €399,000, down from €450,000. There were also plenty of buyers for the large four-bedroom houses at €460,000, down from €575,000.

The scheme, at the foothills of the Dublin mountains, has been going on for the best part of a decade and is now a well matured neighbourhood close to the M50.

Meanwhile Michael Cotter of Park Developments is still selling strongly at Dublin's longest running development, The Gallops in Leopardstown, now in its 18th year.

So far Park has sold no less 83 apartments at the reduced price of €395,000 for two-bedroom units. Savills HOK who are selling for him, also had success last weekend in Cappagh, Dublin 11, selling 61 units at a development called Heathfield. The two, three and four-bedroom houses started at €284,950, making them accessible for first-time buyers who until now have been holding off. Sure enough the bargains have come along, and at a greater discount than most people had expected. Expect to see even more developers tapping into the discount market after Easter when the main selling season gets underway.