Another strong signal that the cost of development sites is on the way down has come from the failure by AIB to find a buyer for its seven-acre sports grounds at College Drive in Terenure, Dublin 6W. Only three parties tendered for the housing site and though one of them offered close to £8 million (10.16m), it was not acceptable to the bank.
Agent DTZ Sherry FitzGerald has now opened negotiations with a number of interested parties in the hope of selling it for over the guideline price of £9 million (11.43m).
The low level of interest in the site underlines the reluctance of builders and banks to take on development land because of uncertainties in the new homes market.
This is blamed on the Government's decision to withdraw mortgage interest relief for investors and to set aside 20 per cent of all sites for social and affordable housing. The Terenure land is among the best-located to have come on the market in the suburbs in recent years.
Meanwhile Hamilton Osborne King is also seeking a buyer for Clancy Barracks at Islandbridge, Dublin 7, after only one developer tendered for it along with Dublin Corporation.
