'Critical' lack of housing in capital fuels 'dysfunctional' market
Published 09/03/2014 | 02:30
'Location, location, location' remains the buzz phrase in Dublin's increasingly frenzied property scene.
The cynics might call it a 'shoebox', but a small terraced house requiring "total renovation'' sparked feverish bidding.
It eventually sold for €325,000 – all because it was in Blackrock.
Although the price remains a far cry from those seen during the Celtic Tiger – when a neighbouring property fetched €670,000 in 2008 – given the condition of this house, the sale is seen as another sign of a buoyant market.
Number 3 Stradbrook Gardens is tucked away off the Stradbrook Road. The accommodation squeezes a hall, three bedrooms, living room, kitchen, and shower room, into 712sqft of floor space.
Wade Wise, from Beirne & Wise estate agents, said location remains the byword in determining property prices in a rejuvenated Dublin market.
"This house in Blackrock has development potential – and there's planning permission to extend it," he said.
"There's a serious lack of supply in houses that are suitable for families in Dublin. Therefore anything that meets this demand, and comes on the market, is attracting attention and interest."
He said prices had been steadily rising since autumn.
"It's the same story in Dublin 6, Dublin 14, Dublin 4 and South Co Dublin. They are all experiencing big interest in family homes."
He added that the apartment market in certain areas is also on the move.
"It's all about location and in Blackrock there are cottages commanding at least €325,000," he added. "There's a lack of supply and there's a lot of buyers out there. If that continues it's going to push up prices further.
"Specific hotspots for family homes are 20 per cent up on the same time last year."
This latest development in the Dublin property scene –where a housing shortage is pushing up prices – is reflected in a number of other urban locations, most notably Galway and Cork city.
Data released by Sherry FitzGerald shows the supply of homes for sale in the capital has fallen by 54 per cent in 12 months. It is estimated there are just 3,025 properties advertised for sale in Dublin for a city of 1.3 million people.
Sherry FitzGerald's chief economist Marian Finnegan said: "We have never seen anything like this. Supply is now critically low in Dublin.
"The sort of inflation we're experiencing as a result benefits nobody. We have moved from one dysfunctional market into another,'' she warned.