Houses in a Derry street which sold for upwards of £300,000 eight years ago are now being sold for less than half that price.
The houses in Claremont Manse (pictured), off Northlan Road, were first placed on the market in 2008 and at the time were described as an ‘exclusive new residential development of luxurious townhouses and semi-detached homes’.
Now, the same houses are on sale for £135,000.
An estate agent is offering a group of six five-bedroom properties at Claremont Manse for £900,000.
The package includes a three bedroom property at Glenvale Park.
That works out at an average price of £128, 571 for each home.
A brochure advertising the sale states that six of the properties are ‘tenanted on monthly rolling leases’, and have an ‘income producing at £44,160 per annum’.
The properties up for grabs are numbers, 2,10, 15,17, 23 and 25 Claremont Manse and number 40 Glenvale Park.
The closing date for offers is 12 noon on Friday, April 22.
Paddy Gray, Professor of Housing at the Magee campus of Ulster University, said the significant reduction from the original asking price of the properties was indicative of a pattern emerging in the housing market on both sides of the border.
He added “House prices have dropped by up to forty to fifty per cent, depending on location and area.”
“Prices are starting to stabilise, but there are a lot of properties which are selling for well below what people would have paid for them at the height of the boom where people would have paid a very, very high price.
“Looking at the prices on offer here, these people would be very concerned that they are tied into high mortgages, when there are people moving in next door who are paying very low prices compared to what they paid, or renting.”
With regards to renting, Professor Gray added that there had been a ‘sea change’ across Ireland, where areas that had boasted high priced and sought after properties in 2007 now consisted of mainly rental properties.
“All of sudden these have become rental areas, where you have people coming and going, which can result in a transient area,” he added.
“Someone could have bought at the height of the boom for £320,000 but a landlord is able to come in a few years later and buy the same property for around £120,000. They can rent that property out and easily cover the mortgage.”
Professor Gray concluded: “That can lead to a situation where there is no longer a sense of community, because the people have no allegiance to the area as they’re renting.”
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