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Battle of the fairways

Two huge schemes championed by big golf rivals are currently being built in Ireland. But is there enough demand, wonders Dara Flynn

As the Irish golfing market begins to reach saturation point, two champion golfers, Seve Ballesteros and Greg Norman, are the latest to find themselves in a mammoth property play-off, albeit on different courses. Both have designed state-of-the-art championship courses with seriously pricey properties attached, backed by a massive combined investment of more than €250m.

Australian golf champ Norman has more than 20 PGA tour victories and 50 international victories to his credit. He is just as well known for his near-misses, having suffered at least one play-off loss in each of the majors, including the 1996 Masters.

He designed the recently opened championship links at Doonbeg in Co Clare, and the massive €150m pumped into it might worry some people, particularly in a country heading for golf saturation point — but not the Great White Shark.

Doonbeg is backed by the American golf developers Kiawah Development Partners. Most of the properties here — 56 suites and a series of links cottages — are very pointedly aimed at the upper end of the market. Construction on the first phase of plush suites, which sit on all three floors of the Lodge clubhouse building, has just begun. All 28 units have sold off plans.

Although the developers remain discreetly tight-lipped as to the suites’ owners, it is known that properties were only sold to members — these include Senator George Mitchell and Richemnont magnate Johann Rupert.

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Everything about the design, layout and furnishing of the suites has a decidedly American slant. The carpets are described as “tweedy”, the wooden fireplaces were designed “in the spirit of Ireland’s past” and there are “powder rooms” in many of the suites.

Membership is not included in the purchase and any prospective buyer must be a member “in good standing” or in more simple terms be the type of person who can cough up an extra $30,000 (€24,000) without blinking. That initiation fee is set to rise to $35,000 (€28,000) later this year.

In the second phase of properties, called the Garden House suites, each has a small patio garden off the bedroom and a private roof garden. Siematic galley kitchens have been fitted, and there are antique beams and gas fireplaces in the bedrooms.

Prices at Doonbeg are of the “if you must ask, you can’t afford it” variety. The remaining units, the courtyard suites, range from €520,000 for a one-bed suite to more than €1m for a four-bed, 2,100-sq-ft suite on two levels.

At Killinard, Co Laois, Ballesteros has designed the Heritage golf course, financed by a local developer, Tommy Keane, of Corrigeen Construction to the tune of more than €100m.

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A total of 77 properties will cluster around the clubhouse, the final phase of which was released last month to coincide with the official opening of the course, marked by a celebrity four-ball featuring Padraig Harrington, Ballesteros himself, Vijay Singh and John Daly.

Despite the appearance of such luminaries, the Heritage properties are more modestly priced, resembling modern-day new homes both in outfit and affordability, with prices starting at €400,000 for the three-bed houses. A detached four-bed with 2,550 sq ft costs €610,000 and the vast 2,940-sq-ft four-bed with sauna costs €675,000. One membership share (worth €40,000) is included with the purchase of a property, transferable or for use by the owner himself. Completions are due in spring next year. While the properties at the Heritage seem to be aimed at the mid-to-upper crust, general manager of the club Eddie Dunne, says interest has already been aroused among some big-business figures.

“Niall Quinn, the former footballer, is a member and often brings his sporting buddies down to play, but we have a few heavy hitters too,” says Dunne.

Golf is one of the biggest tourist draws to Ireland. In 1988, our courses attracted 58,000 tourist golfers. By 2003, that figure had jumped to 240,000 visitors. There are now 411 golf courses on Irish soil, 52 of which are seaside links, representing a third of such courses worldwide. Ireland was voted established golf destination of the year for 2004 by the International Association of Golf Tour Operators.

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“A lot of development has taken place over the past 10 to 15 years. We are now equal to any other international destination in terms of great golf courses. Overall developments such as Doonbeg and the Heritage are hugely beneficial to the Irish market,” says Damien Ryan, the director of golf at Failte Ireland.

Despite a downturn in tourism worldwide, due to the war in Iraq, anti-terrorism precautions and the American presidential elections, golfing is still faring well. “It’s down, but it’s holding its own. Even though exchange rates with America aren’t in our favour when you compare us with Scotland because sterling is doing better,” says Ryan.

Ireland now rivals Scotland for golf, with 18 holes for every 14,000 people. But even with golf tourism included, can the Irish golf industry sustain such a high number of courses? “I believe we’ve reached the stage where we have to be careful we don’t move to saturation point,” says Ryan. “Anyone thinking of designing another course in the future will have to look very carefully at where it is located, as well as exactly what market it is aimed at.

“There are a lot of new golf developments now but the cake is only so big,” he says.

“I would make one distinction and say any links development will always be welcomed, because we are running out of coastal land for links, which are hugely important for the American market. The American golfer won’t come here for parkland courses, since there is already a huge number of great parklands in America. Heritage is near Dublin, so it can cater for corporate parties from Dublin, the domestic market, the UK, Europe and a small amount of American interest,” he says.

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With so many new village-style golf complexes going up, competition is just as rife off the greens. Today, golf complexes are on the lookout for business from golfers, tourists, housebuyers, sports fanatics, prestigious international players and celebrities. To keep house values afloat, golf clubs will need to keep the clubhouse packed and the fairways booked.

The golfers’ reaction to Doonbeg has been largely positive, though judging by recent user ratings on the PGA tour website, largely depends on the player’s wallet. One irate golfer said: “Not a bad course, tremendously overpriced — you are paying for the name . . . Probably on a par with the European — not in the same league as Lahinch but double the money. A real rip-off.”

Another golfer on the same forum had a more positive reaction: “I don’t know what course that last guy played. The design was beautiful, with Irish rock walls, criss-crossing fairways, a green with a bunker in the middle of it and the testiest par 3 of 100 yards you will ever play.”

As well as attracting the golfers, clubs in the Major leagues need to maintain championship standards to attract even the minor tournaments such as the Murphy’s Irish Open, the American Express Championship and the AIB Seniors. In June next year, the Heritage will host the AIB Irish Seniors Open and is tipped by many to host the Irish Open for 2006. The American Express Championship this September, meanwhile, went to nearby Mount Juliet.

“The likes of the K Club, Mount Juliet, Carton House, Druid’s Glen — this is the company we keep, although trying to compare them is like a motoring enthusiast comparing a Mercedes with the Rolls-Royce,” says Dunne.

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Already the Heritage and its homeowners are set to benefit from the presence of the world’s top 50 golfers and their fans in the run-up to the Ryder Cup 2006, to be held at the K Club, just 40 miles away. Demand for accommodation close to the course is high, with some people prepared to pay $50,000 (€41,000) or more for a property with easy access to Straffan.

The properties at Doonbeg, are likely to hold their own, too, considering their strategic location on Ireland’s prettiest coastline, already a mecca for American golfers with Lahinch, Ballybunion and several other established clubs sitting along the southwest peninsula. According to Ryan, any golf course in Ireland with high-class facilities and accommodation will typically pay for itself in the long term.

“For most courses with housing developments, the housing is a big factor in getting costs down and in terms of payback. For instance, if you sell 25 or 30 properties for a certain amount each, this can pay for the development costs.

“There are always casualties, but a golf course providing the right services at the right price for its market will always be successful.”

Properties at Doonbeg Golf Club, 065 905 5600

Heritage Golf and Country Club, HOK New Homes, 01 618 1339 and Ray Hume property consultant, 086 255 1435