Price of sites

M

markod

Registered User
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16
We are looking for a 1 acre site to build a new home in north east Galway.

Had a look through the usual web sites and spoke to a couple of auctioneers, but they are still quoting pre-recession prices which seem ridiculously over-inflated.

Before we start to haggle it would be good to know what the going rate is. Does anyone have a feel for how much sites are back? Are we looking at a 20%, 30% or even 50% discount on the 2007 prices?

Thanks
 
Farmland is about 10k an acre!!!

Depends on the location really
Check daft.ie
 
Hi Niallers,

I saw an article lately and with regard to land you'd be talking about 20% drop around the area I am in which is the South East. The average price of a site is approximatley E100,000 for 1 acre and with the drop E80,000 possibly even E70,000.

Angela59
 
Have been keeping an eye on sites myself and the prices in Limerick dont seem to be dropping either.

Only a very odd one which possible means the owner needs cash injection.

The land owners might just start dropping the prices soon if the government stick to their plans of the shed grant now only being paid over 3 years.

Few might need the euros!
 
This might seem pretty simplistic, but this is what I would do:

Ignore the list prices for the moment. Look at similar completed houses in the area ..what are they selling for? Deduct the construction cost of the house & maybe 10% for planning costs etc. You're left with the max site price that you should pay. Then, if I found a site I liked, I would offer to pay my max site price less 20 - 30%. I think the price you offer should be under the list price anyway so, depending what I came up with, I would adjust my offer again according to list price ...
 
demoivre said:
In many cases they are not back at all !
Click to expand...

That's what we seem to be finding. Plus there aren't half as many sites around, which seems a bit strange. I thought with money being tight landowners might be more willing to put land up for sale. Especially since site prices seem to be holding up.

Thanks for feedback anyway guys.
 
Hi Markod,

Don't despair, around where I am sites are taking a lot longer to sell and there are plenty of them - you're in the wrong part of the country!.

Angela59
 
Sites are holding their values are generally the farmers dont need to sell....dont expect a big reduction!!
 
Correct, site prices have not come back in line with other property, the problem is that landowners have traditionally (at least for the last 10 years) viewed site sales as a windfall (a mini lotto win). Generally they are not under pressure to sell but seeking opportunistic sales. Not all land-owners however are in such a smug position. My advice is wait, at least 1 year. Some of them will break ranks out of necessity and that will cut the legs out from the other speculator types. I echoe the advice above from Kate 10, when you do begin to seriously deal, (next year when build costs have dropped even further)

"Ignore the list prices, Look at similar completed houses in the area ..what are they selling for? Deduct the construction cost of the house & maybe 10% for planning costs etc. You're left with the max site price that you should pay. Then, when you find a site you liked, offer to pay my max site price less 20 - 30%.
If you plan living there for 10, 20 or more years, you are in no rush, rent somewhere nearby for a year and get the feel of the community for almost zero risk
 
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