Two Dublin developments show the impact of new rent rules

Shelbourne Plaza faces bidding war while the Casino is withdrawn

Two well-located Dublin apartment developments recently offered for sale have met with different responses from the investment market following the introduction of the new four per cent cap on rent increases.

A 10-year-old development of 52 apartments known as Shelbourne Plaza in the Silicon Docks area of the south inner city has attracted particularly strong offers from eight bidders – most of them institutions – largely because the homes are vacant and will not be subject to the new rent restriction.

The entire portfolio has in the past been leased en bloc to a management company supplying short-term serviced accommodation. The new buyer will now have the option of continuing with this leasing arrangement – though probably at slightly higher room rates – in order to remain outside the rental embargo.

The second development of 105 individually let apartments at the Casino in Malahide village has been withdrawn unsold due in large part to the limited scope for rent increases as a result of the new tax guidelines.

Strong bidding

Agent Knight Frank had been guiding €18.5 million for the Shelbourne Plaza apartments on Ringsend Road but after unusually strong bidding, the selling price could end up close to €22 or €23 million.

Rents for short stay one-bed apartments in the area range from €850 to €1,000 per week, while two-beds units fetch from €1,000 to €1,500 per week. Of the 52 apartments for sale, six are one-beds, 42 two-beds and four four-beds.

Selling agents Hooke & McDonald had been quoting more than €40 million for the 105 apartments available in the Casino, an impressive development overlooking the coastline on the edge of Malahide village.

The Casino is an impressive development overlooking the coastline on the edge of Malahide village.

Developer Gannon Homes originally sold 10 of the apartments when they were completed in 2005. The company’s new strategy will be to sell on the units on a phased basis as they become available.

All the homes have balconies or terraces and many of the penthouses have uninterrupted sea views.

The €40 million valuation equates to about €381,000 per apartment but they are now expected to make considerably more because of the high quality of the development and the shortage of accommodation in the village.

International interest

While the passing rent roll is in the region of €1.9 million per annum, recent lettings have shown a market rental value of at least €2.37 million.

Investors planning to acquire some of the Casino apartments can expect to get a rent of at least €1,900 per month for two-bed layouts and more than €2,250 for two-bed penthouses.

The latest round of bidding for the Shelbourne Plaza in particular underlines the continuing interest by international funds in Dublin’s apartment market and the urgent need for further developments to facilitate overseas workers relocating to Ireland.

The high level of interest in blocks of apartments is all the more surprising because up to the time of the property crash only a handful of these schemes were owned by either Irish or overseas institutions.

irishtimes
TwoDublindevelopmentsshowtheimpactofnewrentrules
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
3 views in october
I recommend
No recommendations yet

Comments

Post your comment to communicate and discuss this article.

Society
Two men and two women have been charged with impeding the investigation into the murder of Patricia O’Connor, whose dismembered remains were found in the Dublin-Wicklow Mountains last year. Augustine O'Connor, 74, of Mill Close, Clasheen, Stamullen, Co Meath, his daughter Louise O'Connor, 40, of Lower Gardiner Street, Dublin 1, her ex-partner Keith Johnson, 41, of Avonbeg Gardens, Tallaght and Ms O'Connor's daughter, Stephanie, 20, of Lower Gardiner Street...
Society
A 21-year-old Italian man has been found not guilty of causing grievous bodily harm to an Irishman outside Anfield in Liverpool earlier this year. Filippo Lombardi from Rome had pleaded not guilty to the attack on 53-year-old Sean Cox outside a Liverpool versus Roma Champions' League semi-final match on 24 April - writes rte.ie The prosecution case was that another man, referred to in court as N40, threw the punch that hit Mr Cox but Mr Lombardi swung a be...
Society
National Slow Down day, an operation aimed at getting motorists to watch their speed on roads, got under way this morning. The 24-hour operation came into force at 7am and will continue until 7am tomorrow. It consists of high visibility speed enforcement in over 1,000 enforcement zones, as well as the delivery of a road safety message through the use of national, local and social media. The objective of the operation is to reduce the number of speed-relate...
Society
Housing and homeless agency Novas, which works with vulnerable individuals and families in Limerick and the mid-west, has said it helped over 4,500 people last year. In its annual report released today, it warns of the worrying trend that those becoming homeless are getting younger. Novas works with homeless people, and those at risk of becoming homeless, in Limerick, Kerry and Tipperary. The escalation of the homelessness crisis, coupled with more people...
Society
Irish baby name trends have taken a such a drastic turn in the past century some are becoming extinct, research has revealed. While some new entries gained traction in recent years, there are still timeless favourites that soar high on the popularity scale. The Ancestry.ie survey identified Adam and Harry as the favourite names among boys, seeing a 1,396% and 979% percentage increase since 1917 respectively. They are followed by Luke, Aidan and Mark to for...
Incidents
One person was hospitalised after a crash between a horse and carriage and a car overnight. Two fire engines and an ambulance were called after the crash at 2:30am on the junction of Eccles Street and Dorset Street. The man at the helm of the cart was brought to hospital although his injuries were not believed to be serious. The horse bolted for about 100 metres after being startled by the crash but was uninjured. The carriage however received heavy damage...
Society
A grieving Dublin woman said she is still in shock that her elderly mother died from spilling a cup of tea. Daphne Anderson (91) - originally from Glasnevin - died from sepsis, which she contracted in hospital while being treated for scalding injuries. Daphne's daughter Audrey told The Herald that her mother had been fit and active prior to the injury. She said: "My mother was fit and in good health. I can't believe that spilling a cup of tea could have ki...
Society
Passengers were left frustrated at the weekend as Aer Lingus was forced to cancel two flights at late notice. People hoping to fly to JFK Airport in New York on Saturday afternoon were angered when the flight was cancelled. Aer Lingus flight EI109 was due to leave Dublin for JFK at 4:10pm but was cancelled just hours before. Many holiday-makers were sat in the airport at the time waiting for information when the news broke the flight would not be in operat...
Incidents
Vandals who set fire to two taxis over the past four days in Crumlin have been condemned as "scumbags". One cab was burnt out on Friday night, followed by another this morning. The Dublin Taxi Drivers Facebook page shared images of the destroyed vehicles this afternoon and urged people in the area to be aware of any suspicious behaviour. In the post, the group wrote: "Two taxis burnt down in Crumlin, Friday night and one this morning on Sundrive road! "Be...