Property survey focuses on commercial sector, agricultural and development lands

Property survey focuses on commercial sector, agricultural and development lands


Áine Ryan

A GROUNDBREAKING piece of research, ‘The Mayo Property Price Survey’ has predicted that prices in County Mayo should bottom-out next year, but that’s not before asking prices drop further. In last week’s Mayo News, the residential market was analysed, now, in this week’s issue,  we examine both development and agricultural lands and commercial property.
Published by Gerard O’Toole of Tuohy O’Toole, in consultation with other leading auctionieers from around the county, the survey aims ‘to provide reliable and impartial information for buyers, sellers and anyone interested in property.

Agricultural and Development Lands
DRAMATICALLY, the report states: “Frankly we do not see any prospects for recovery within the development sector for some considerable time.” It reveals that there have been very few sales of development land throughout County Mayo in 2009, which was ‘not at all surprising given the lack of demand for completed housing and the complete block on funding for the sector’.
“Development land values peaked in late 2006 where even modest development opportunities were attracting very aggressive bids. This was most evident for town centre brownfield sites or edge of town greenfield sites that were zoned or had access to main services,” the survey states.
It then suggests the possible need for further price reductions and also cites the real possibility of ‘an orderly sell of some development land within County Mayo that may come under the control of NAMA or indeed other property owned by so-called foreign banks that might fall outside of the Government Bank Guarantee Scheme’.
Meanwhile, the survey finds that there have been more modest price falls in respect of agricultural lands, with this trend defined as ‘a softening’ rather than a collapse in this sector.
Interestingly, sites with full planning permission demand the highest in the Westport and Castlebar rural areas, where vendors are still asking for up to €150,000 for a site.

Commercial Property
PRIME retail rents are highest in Westport at €30 to €35 per square foot, as opposed to the lowest per square foot rate in Ballinrobe of €14.
The survey notes that: “Prime town centre locations such as Pearse Street, in Ballina, Hopkins Road in Castlebar and Bridge Street in Westport continue to attract interest and as such there is limited, if any, available units on the market.”
Findings reveal that lease terms have become more flexible, with rents reduced by as much as 30 per cent in secondary locations and by up to 20 per cent in primary locations.
Contributors to the survey are all practising auctioneers and selling agents – Barney Kiernan (Castlebar), Garret Loftus (Ballina), Pat Killeen (Claremorris), Eddie Campbell (Ballyhaunis), Adrain Burke (Ballinrobe) and Helen Cassidy (Clonbur).
All prices were the average.