Equating this in monetary terms therefore, the average house in Ireland cost approximately €227000 in the second quarter of 2002 with an anticipated rise to €231000 by the year end with prices in Dublin being higher, although accelerating at roughly the same pace – an average Dublin house cost €298000 in June, up 13.6% in 6 months (Irish Property Review, 2000:4).
3.0 Dungarvan, County Waterford
Dungarvan is located in County Waterford (see Locality map at Appendix B), and comprises approximately 560 Hectares of zoned land (including Ballinroad village). It has a population of approximately 7200 persons (1996 Census: 7175 persons), and is centred around a harbour at the mouth of the Colligan River, some forty-six miles from Cork and 28 miles from Waterford City (Dungarvan UDC, 2000:4).
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Role
Dungarvan functions as the main service centre for the outlying areas in the County, especially West Waterford. The headquarters of the Waterford County Council is based in the town, and the other service roles which Dungarvan fulfills are in sectors such as education and tourism. Industrial (eg. Waterford Crystal and GlaxoSmithKline) and commercial employment is an important contribution to the local economy (ibid).
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Infrastructure
The town is well served in terms of infrastructural provision – namely roads, electricity, and water. The sewage treatment capacity in Dungarvan is currently being increased, with additional pipes and new treatment plant being constructed in Ballynacourty. Amenity facilities such as public open space, pedestrian/cycle ways, and sportsfields are also provided in various parts of the town.
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Spatial and Planning Aspects
Spatially, Dungarvan is divided into 3 sections – Old Dungarvan, Abbeyside, and Ballinroad. Old Dungarvan and Abbeyside are separated by the quay and Colligan River, with Dungarvan containing the main shopping ‘Square’. Ballinroad village is a ‘satellite’ extension to the northeast of the town, and is slowly but gradually being assimilated and incorporated into the town’s expanding form.
The 2000 Dungarvan Development Plan states as its Residential Strategy that “ the adequacy and flexibility of housing supply is essential to implementing a growth strategy for Dungarvan”, and that infrastructure should therefore be in place in advance of the demand (S3.2.10 and 3.2.11). The Urban District Council’s (UDC) policies and objectives with respect to the town and residential housing, and those directed at Residential Area Design are extensive, and are included in this report at Appendix C.
Section 3.2.17, page 13, of the Plan makes provision for the consideration of the WCC and UDC Housing Strategy (adopted ito Part 5 of the Planning and Development Act) which provides for a 20% minimum provision for social and affordable housing in proposed housing estate developments.
Given the considerable demand for housing and the lack of supply, as well as recent government moves to introduce flexibility within this requirement, it is not considered that this provision is likely to cause any decrease in the house prices in the town, although it is maintained generally throughout Ireland that this provision is likely to devalue their houses.
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Recent Developments
Recent developments in Dungarvan include the rezoning of additional lands (as tabled in Appendix D) which are outside and adjacent to the existing UDC boundary, to cater for the current and future anticipated housing demand to 2015 .
The additional land comprises a total of approximately 71.27Ha (176.25acres) and extends lands identified for future housing provision in the DDP, and identifies new areas to the west of the town (eg Knockbrak) for both future residential and industrial development. All the lands identified and rezoned may be easily accessed and serviced.
In addition, the public consultation phase of a planned future Dungarvan By-pass Road, and an amended submission for the ‘Glanbia Site’ shopping development proposal to extend the town centre shopping area, have been recent initiatives.
4.0 Discernible trends and Developments in the market
In parallel with Waterford City, the “lack of supply of new housing stock has impacted on the price of (new and) second-hand houses” (Business Post: 1/12/2002) in Dungarvan.
“Since the beginning of 2002, the price of second-hand suburban houses has risen by 14% to 21%. New homes have also increased in value by an average of 16%. The current entry level for a new or second-hand 3-bed home in the city ranges from €159 000 to €208 000. The average price of a four-bed house in a good location is €300000. Very few houses in Waterford are priced over €450 000, either in the new of second-hand market. The Prices of houses are significantly lower than in other cities” (ibid).
- 4-Bed Semi-detached houses
Whilst the range of houses varies considerably within the town, depending on the location, age, features and general condition of the property, generally at present, a 4-bed semi in various housing estates located in the Old Dungarvan side of town, which are usually second-hand homes, realise approximately €160 000 – €175 000, whilst those located in Abbeyside or Ballinroad, are sold for a slightly higher price. The guide prices of these usually commences at approximately €165 000.
- 3-Bed Semi-detached houses
The 3-bed semi-detached homes in the Tournore Court development, serve as a good example to illustrate the price increase and inflation of houses in the town. When these houses were initially sold, the selling price was €135 000. Today, 18 months later with the second phase due to commence in 2003, the exact same house (size and type), in the same locality, are being sold off plan, for €176 000
- 2-Bed, Second-hand Townhouses
Second-hand townhouses of the 2-bed, single storey size, are generally located in Abbeyside – with most of those in Old Dungarvan being older and generally with owners who have lived in them most of their lives. Most of the townhouses in Abbeyside realise a selling price in excess of their guide price, by between €15 000 and €20 000 – selling at between €115000 to €180000. Those located in ‘Old Dungarvan’ generally take longer to sell, have a slightly lower guide, and do not achieve similarly comparable selling prices to Abbeyside.
It is considered that with the increasing cost of homes, and associated difficulties experienced by first-time and single home owners trying to get onto the ‘property market ladder’, that this trend might at some point in the future be halted, with the more affordable houses in the Old Dungarvan being increasingly swiftly purchased and refurbished/renovated as an individual’s budget allows. This would have the added benefit of providing a much needed ‘face-lift’ and regeneration of appearance within certain parts of the town.
- Tax-Incentives
Another feature of the property market in the town, are those properties for which tax-incentives have been identified. A development of seven new townhouses in Abbeyside, close to shops, schools, quayside, and in a relatively quiet area, has a Section 23 tax incentive. The selling price for these (2 and 3-beds) is €194 000, which is expensive when compared to other similar properties, but possibly also reflects the fact that the Section 23 tax break has been built into the asking price of the units, as well as the fact that these units will always be easily and quickly let by any owner-investor.
- Additional Considerations of Demand
Generally most houses in Dungarvan are, at present, being sold off plan, approximately 1 – 2 years in advance of being constructed, which, it is suggested, is a reflection of the demand and need for housing in the area.
4.6.1 Zoning
Whilst Dungarvan does, at this stage, have sufficient residentially zoned land to cater for housing demand well into the future, this has occurred chiefly as a result of political/interest group demand and pressure, than from any additional provision in serviced land, or concern with respect to the need to address the lack of housing supply in the town. The provision/supply of housing, as well as the choice and variety of house types within housing estates, thus continues to lag behind demand, continuing to drive up the sale prices of houses in the town.
- Infrastructure
Although the planned infrastructural works in Dungarvan (eg. with respect to sewage treatment plant and extensions to the public sewage pipes) will address specific needs in terms of infrastructural provision to meet housing demand, the implementation of these works often slow, delayed and unco-ordinated , and can be said to also therefore play an influential and contributing role in increasing house prices in the town.
It is felt that UDC and WCC housing and infrastructural policies and objectives could be better served and implemented, by more attention and a commitment to an integrated and co-ordinated approach to physical implementation.
4.6.3 Locality
In comparing house prices in Dungarvan with other towns/villages and cities around the country, these would appear to be paralleled with places like Waterford City and Douglas (in Cork) etc, than any of the similar sized towns such as Wexford, Clonmel. However, Youghal and Tramore also exhibit a similar property market structure, and price range.
Whilst the reasons for this do not seem readily apparent, it is believed that contributing factors would be their location with respect to major regional shopping centres, and excellent accessibility conditions to both Waterford and Cork City. These towns also provide an alternative and often more desirable option than urban city living, and are possibly therefore considered more desirable, especially for ‘growing’ families. Dungarvan, in addition, would have it’s own established employment base, therefore reducing the necessity for commuting to work.
4.6.4 Delivery Mechanisms
To date, it would appear that little opportunity has been made of a alternative approachs to service provision (eg. public/private partnership). It is regarded that further consideration and implementation of such an approach, could play a more useful and valuable role with respect to infrastructural provision and facilities. “ It is imperative that any obstacles to achieving the supply required to meet the demand for all types of accommodation are removed immediately” (The Property Professional; 2002:9).
- Statutory Regulation
Control bodies (eg. An Bord Pleanala and Local Authorities) receive much criticism and are held responsible for many delays associated with the granting of planning permission. It is maintained that a greater sense of responsibility and accountability is required by all parties levelling this form of criticism, and more of a partnership approach to development proposals should be adopted.
It is suggested that many of these delays, refusals and ‘hiccups’ would be prevented by developers and architects ‘doing their’ homework properly – ie engaging in active and proactive pre-planning discussions and meetings before submission. Thus ensuring that the Local Authority and planners are familiar with the proposal and that all issues etc. have been addressed prior to submission. The application may also therefore be more speedily assessed.
5.0 Conclusion
Some of the main factors driving housing demand comprise:
- Confidence (ie. expectations with respect to house price movements and mortgage rate changes; job security; attitude with respect to house purchase being an investment etc.);
- Affordability;
- Urgency to buy;
- Housing Supply (ibid)
It is felt that whilst 2002 has continued to experience a ‘buoyant’ property market, each of the above has been negatively affected over the past year by world and national events, and more recently economic realities and government budget measures. It is considered that the effects of these will become slightly more apparent in 2003 with a slowing down of house purchases, although the fact that the population of the town and country is expected to continue to increase at increasing rates, the demand for houses will continue, possibly meaning little change to current prices.
“The pace of inflation is easing gradually as we progress through the year and will continue into the fourth quarter with much lower levels of inflation anticipated for 2003” (Finnegan, SFG; 2/10/02).
_____________________________________Bibliography
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& 23)
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Note: Abbreviations have been used when referencing, eg. The Sunday Business Post – SBP.
Internet Sites
- “Building with Bacon” -
unpublished essay
- Dungarvan Physical infrastructure and services
- “Average Three Bed Semis Increase By 6 Per Cent –
Survey.” (01/09/02)
- “IPAV survey shows gaps between
Prices in Dublin and the Rest of the Country” (1 August 2002)
- “News and Views on Ireland’s Property Market
- Power, J. “Poor Housing Fundamentals But
Prospects are Brighter.” Friends First
- “Press Release: Sherry
FitzGerald Countrywide Announce its Alliance with 25 Members in 30
Offices Countrywide”
.
- “Press
Release: Sustained uplift in house prices reflects a market in correction.”
Finnegan, M.
_______________________________________________________________________Appendix A
_______________________________________________________________________Appendix B
_______________________________________________________________________Appendix D