The insatiable demand for starter homes in the Dublin suburbs looks like being considerably eased as plans take shape for between 1,500 and 1,600 homes in the grounds of Blanchardstown Hospital.
The high-density development is likely to be one of the first major schemes approved by the planners since the Government recommended increased densities due to the shortage of development sites. Developers Martin Lydon and Bernie Gallagher originally proposed to build 1,918 apartments and duplex units on the hospital site but are now expected to reduce that figure by at least 300 following discussions with Fingal County Council. It will be the first large-scale private development in the Dublin suburbs without the conventional three-bedroom semis so much sought after by first-time buyers. While the mixture of residential units has yet to be finalised, the indications are that the developers will opt for an entire scheme of apartments and duplex units.
This would enable them to sell two-bedroom apartments and two-bedroom duplex units from around £100,000 each. The scheme will be aimed primarily at the starter homes market.
A planning source said one alternative was to opt for 900 threebed semis - the equivalent of 12 houses per acre.
"We could not possibly use this valuable land so close to the city for a traditional-style development of starter homes with front and back gardens. To do this would be to misuse the available land," according to the source. The Blanchardstown development is to be carried out in three phases, with about 900 apartments and duplex units in the first element. A formal planning application for the scheme is not expected to be lodged until a Government appointed commission drafts new planning guidelines for higher densities. These are expected to be with the Minister for the Environment, Mr Dempsey, early in January. Even before the setting up of the commission, Fingal County Council indicated its support for high-density housing on the hospital lands because it is located immediately beside Blanchardstown, which has a full range of infrastructural services.
In a highly significant move, the council planners said that they would take 42 acres of parkland in the hospital grounds into account when deciding on the total number of residential units to be allowed on the site. Mr Lydon and Mr Gallagher paid around £36 million - some £16 million higher than the guideline price - for 114 acres beside the James Connolly Memorial Hospital, including the 42 acres to be retained as open space.
Meanwhile, a low-profile building company which recently paid over £6 million for The Adelaide Hospital, off Aungier Street in Dublin 2, is currently examining whether to demolish the Victorian building to make way for about 200 apartments. If it is decided to retain the 130,000 sq ft building, it could be converted into 180 apartments ranging in size from one-bedroom to three-bedroom. Many of these are likely to appeal to investors even though they can no longer claim mortgage interest relief against rents. The special appeal of the Adelaide apartments will be their proximity to the DIT colleges at Aungier Street and Kevin Street. However, the majority of the apartments are likely to be bought by owner-occupiers. The hospital stands on 1.5 acres at Peter Street, which may allow the new owner to use part of the site for a small office scheme.
Almost 3,000 apartments will have been sold in the city by the end of the year, with around 40 per cent of them qualifying for Section 23 tax breaks. There has been a particularly strong demand for these units in recent weeks even though developers have been charging premium prices before the tax incentives scheme runs out at the end of the year. This week, apartments in five Section 23 developments are being put on the market in the north inner city. They are likely to be bought mainly by investors looking for a tax shelter.
