Another house on Dublin's most expensive terrace - Sorrento Terrace in Dalkey - comes on the market today. Two years ago, a UK-based businessman paid a record £5.9 million for Sorrento House, a substantial property at the end of the terrace with 1.5 acres. Now, Number 3, a terraced house two doors away, is set for auction through Lisney on March 30th. Selling agent Tom Day is quoting a guide price of £2.2 million.

Millionaire buyers are drawn to Sorrento Terrace because of its spectacular location perched high over Killiney Bay. Its eight large houses have stunning sea views and a sunny aspect, which gives their rear balconies a distinctly Mediterranean feel.

However, there are some disadvantages. These are tall, narrow houses with just a couple of rooms on each floor, and no off-street parking.

Tom Day, who also sold Sorrento House, is erring on the side of caution with his guide price, not wanting to "frighten people away" by comparisons with Sorrento House, which has much more space than its neighbours. The last terraced house to sell, also in 1998, was Number 7, which made around £1.8 million. Number 3, like its neighbours, is a four-storey house. All four levels have superb views from the rear windows.

The 3,600 sq ft house is in very good decorative order. It has three reception rooms, including a superb drawingroom facing the sea, three bedrooms, a large kitchen with access to a sun terrace, and a spacious games room. The back garden is terraced with a path leading down to a bathing area. The front door opens into a lofty hallway with pale yellow walls and ornate cornicing. Straight ahead is the drawingroom, a very elegant, pale room. There is also a large study at this level and both rooms have ornate marble fireplaces.

Upstairs, the main bedroom faces the sea and has an en suite bathroom. Two more double bedrooms share a pretty white tiled bathroom.

Steps lead down from the hall to the first of the lower levels. Here, there is a stunning bright kitchen with steps leading up to a window that opens on to the terrace. There is also a dramatic tented diningroom at this level, as well as a utility room and cloakroom. A staircase leads down from the kitchen to the lower level, where there is a quaint bathroom and the sunny games room.