The increased demand for houses and apartments and the steady growth in prices has seen developers and investment groups coming back into the market seeking to purchase zoned development land in strategic locations in Galway city and county. Gerry Conway of APP Kirrane auctioneering is dealing with a large volume of enquiries for development land on an ongoing basis, particularly in relation to Galway city, Barna, and Oranmore, with demand currently outstripping supply.
Sites with planning permission and shovel ready are commanding premium prices at the moment as purchasers queue to buy the limited number of new houses coming on stream. Conway points out that an analysis of the 2016 Census figures shows there are 2,400 more families living in Galway now than five years ago, an increase of four per cent, which is much higher than the national average. The latest report from the Construction Industry Federation confirms that there is currently a shortfall of 2,356 housing units in Galway city and its suburbs.
There were 902 homes completed in Galway in the year to the end of March 2017, an increase of 29 per cent from the 700 completed in the year to the end of March 2016. The Economic and Social Research Institute estimates that 35,000 new homes are needed nationally each year, but that only in the region of 18,000 will be built in the current year. Banking Federation figures highlight that while 35,200 potential purchasers were approved for a mortgage in the year to June 2017, just over 27,000 actually drew down the mortgage meaning there were 8,000 potential purchasers with mortgage approval unable to find a suitable property. This highlights the challenge all stakeholders face in relation to housing and it is essential that the Government and all the relevant agencies work with the construction sector to increase supply in a measured and sustainable fashion.
The recent introduction of the new fast track planning procedures under the Planning and Development Act 2016 is a welcome boost to the property market. Under this process developments of 100 units or more will be processed directly by An Bord Pleanala. This initiative will apply for an initial period of three years with scope to extend it for a further two years if required. The main purpose of the initiative is to free up any logjams in the planning system and to ensure that sites proceed to the construction stage at the earliest opportunity.
The increased confidence in the property market and the speed with which new estates are selling out has given developers and their funders the incentive to purchase residential sites and accelerate the construction of further housing projects. APP Kirrane auctioneering, Bohermore, Galway, has recently negotiated some development land sales and is in active negotiations in relation to a number of others. This is an opportune time for farmers with zoned land to bring it to market while demand is strong.
APP Kirrane auctioneering has three qualified and experienced on site auctioneers, who will arrange to have your land surveyed professionally and will devise a strategy in consultation with you to ensure that the best possible price is achieved. APP Kirrane auctioneering holds a large database of clients with funds available looking for suitable development land in Galway city and suburbs. The auctioneers formulate proposals to help achieve the best possible result for the landowner such as joint ventures, phased site development, retaining sites or houses in a development, and guidance on capital gains tax liability.
The team at APP Kirrane auctioneering pride themselves on their professional approach and give personal individual attention to each client.
For further information or to arrange a consultation with no obligation to discuss your land options call into the office at 16B Sandyford Business Centre, Bohermore, Galway, or call APP Kirrane auctioneering on 091 705555; Kevin Kirrane MIPAV REV MCEI 087 2308674; Gerry Conway 089 2548533; or Caroline Kirrane MIPAV REV MCEI SPMV CV 087 9711771.