Dublin 5: Pent-up demand will push Raheny's prices higher
Unlike many postcodes throughout the capital, Dublin 5 saw an increase in transactions through the past 12 months even though supply remains relatively poor.
Wayne O'Brien of DNG reports a "very good year from a sales point of view", with transactions up from 34 in 2015 to 43 in 2016. Around a quarter of all purchasers were cash buyers, and borrowed buyers making offers were already loan-approved.
O'Brien reports a particular "spike" in competition in Artane, where family houses that were making €330,000 last year are now achieving €370,000.
"There were big increases in Raheny too, with most homes making above their asking price. Houses in Raheny are more expensive than in Artane, so a three-bed semi that would make between €350,000 and €400,000 in Artane will cost between €400,000 and €500,000 in Raheny, depending on location and condition."
O'Brien identifies Brookwood in Artane as the Dublin 5 hotspot. "It's a popular, mature area that's close to the park, the Dart station and the seafront. It has everything."
Donnycarney is also proving popular and is one to watch, with houses there achieving strong prices. In 2017, a new development of 16 four- and five-bedroom houses at Lonsdale on the Howth Road within walking distance of Raheny village will be completed, and O'Brien says that there are a few other small infill developments due to come on stream.
A proposed new development of more than 300 units at Sybil Hill, beside St Paul's College, has yet to get the green light, despite the demand for new houses in the area.
"We have the least amount of supply now that we've had for the past two or three years. There is pent-up demand and so prices will rise. I think the relaxation of the mortgage rules will bring more buyers into the fray, and the banks will grant more exceptions. That and the lack of new development will fuel price growth."
O'Brien's agency believes this is the case to the degree that it plans to open a new office in Raheny early in the year.