Demand for land

Gasherbraun

I wonder what people's opinion of this is;

I was seeking a valuation from an auctioneer (from one of the bigger firms) recently on a property that stands on a generous plot of land in a mature well sought after area in South Dublin. The property has enough land to allow the build of a separate good size family home with its own road frontage subject to planning.

I asked for a separate valuation on the land and was told, fairly dismissively, that there is not much value in plots of land now since builders cannot raise capital to build.

I take what auctioneers say with a large pinch of salt but I just wondered what other peoples opinion was?

Is there really no demand for small well located plots of land?

whippet

Gasherbraun wrote: »

Is there really no demand for small well located plots of land?

not with out planning permission / zoning etc

Orlaw3136

whippet wrote: »

not with out planning permission

x 1,000,000.

Or at least, if there's no planning you're asking the buyer to shoulder the risk that they won't get any or won't get what they want, hence the price will be utterly diluted from what would be achieved with planning.

Gasherbraun

Thanks for the answers.

I accept the lack of planning makes the land a non / less saleable entity at present but it was more the general opinion that people are not buying building plots that surprised me.

The auctioneer did not qualify this statement with any reference to planning.

I suppose to put the question another way is there a demand for building plots with pp in good areas or has the difficulty in raising finance killed that market?

Scortho

It depends on the size of the land.
A house in d6 with a 75 ft back garden and rear access will have more demand than the same house next door with a 25 foot rear garden with a new house built on the rest and sold. It will also be more expensive.

It won't however get the same % premium as it used too.

Gasherbraun

Scortho wrote: »

It depends on the size of the land.
A house in d6 with a 75 ft back garden and rear access will have more demand than the same house next door with a 25 foot rear garden with a new house built on the rest and sold. It will also be more expensive.

It won't however get the same % premium as it used too.

Agreed. The house has always been valued higher than neighbouring properties due to the land and the potential to develop.

Just not sure if splitting the property into house and garden + development site for sale is worth looking at now; the house would still be very saleable but not sure of any overall gain. One for me to consider....

Scortho

Gasherbraun wrote: »

Agreed. The house has always been valued higher than neighbouring properties due to the land and the potential to develop.

Just not sure if splitting the property into house and garden + development site for sale is worth looking at now; the house would still be very saleable but not sure of any overall gain. One for me to consider....

A site being sold behind the house for sale would more than likely put me off buying the house unless it was a good discount compared to other properties on the road.
Reason being that I don't know what could be built on it.