Prices rise for homes in fashionable areas
DESIRABLE family houses in Dublin are showing a strong rebound in price, after suffering some of the sharpest falls of the recession.
Estate agency Lisney, which conducted the latest survey, predicted further price rises in certain areas.
The survey shows increases of up to 3.1pc over three months for houses with six or more bedrooms in sought-after areas.
"Family homes that have good amenities, such as proximity to schools and shops, are firmly the focus of demand," says Lisney's head of research, Aoife Brennan.
There were strong gains in areas such as Dublin 3, 4, 6 and 9, including Ballsbridge, Rathgar, Clontarf and Glasnevin.
Large houses in sought-after areas suffered falls of as much as 71.5pc from the peak of the market. And mid-sized, four-bedroom houses across the capital fell by 58.7pc from peak but rose by 0.7pc over the second quarter of the year.
Three-bedroom houses showed average increases of 1.6pc over the same period to the end of June.
Ms Brennan pointed out that falling supply of family houses could add to the upward trend.
"The number of houses on the market fell by about 19pc, but this ranged up to 35pc in certain areas. Many potential vendors are stuck in negative equity or have tracker mortgages and are not in a position to trade up or down at present."
While Lisney publishes only price trends, rather than actual prices, its index suggests that an average Dublin home is now priced at around €156,000.
This is lower than the average price of €158,000 extrapolated from Central Statistics Office figures.
But more recently, Lisney's overall index suggests a slightly stronger upward trend than other surveys have done.
For instance, the CSO index has shown the pace of price rises for houses in Dublin slowing from 0.7pc in March to 0.5pc in April and 0.2pc in May.
And most recently, Daft showed that prices for similar houses were stabilising in the second quarter.
One of the few houses to sell at auction in a Dublin upmarket area in the second quarter of the year was Laragh, 21 St Thomas's Road, in Mount Merrion. This three-bedroom bungalow sold for €670,000, or 34pc over Lisney's €500,000 guide price.
While in need of modernisation, it stands on a quarter-of-an-acre site, offering potential for an extension.
Meanwhile, Lisney concluded that apartment prices continued to fall.
It said that one-beds were down 1.2pc in the second quarter of the year and two-beds down 0.9pc. Since the peak, these flats have fallen 65.5pc and 67.8pc respectively.
Consequently, for all Dublin homes including apartments, Lisney showed an average increase of only 0.9pc for the quarter.