Sunday 22 October 2017

Investors flooded the market snapping up family-sized properties and let them out

Markievicz Park, Ballyfermot, Dublin 10
Markievicz Park, Ballyfermot, Dublin 10

DUBLIN 10

Ballyfermot.

Up 25%

One Year Forecast: Up 16%

Average price: €130,000

Assessing Agent: Berkeley & Associates

The Market:

Prices in Ballyfermot have risen extremely sharply during 2013 with the biggest demand for two and three bedroom houses – the latter being the largest size stock available in this area according to Roger Berkeley of Berkeley & Associates.

The unprecedented surge came mostly late in the year with a rush of cash buyers (seven out of ten in this area) who had been saving hard for years and waiting for the bottom.

While an increase in first time buyers is evident, investors also flooded this market during the year buying up family sized properties at relatively attractive prices, especially those which needed work. These were let out after money was spent doing them up. With these properties having fetched on average €100,000 at sale and then attracting typical rental returns of €950 per month, demand is expected to continue among buy to letters.

Two and three-bedroom properties sell for similar prices due to the restrictive layout of the latter with only one bathroom often proving a disincentive. Most of the available properties in this established, closely knit area are former Corporation houses which have come onto the private market in more recent years. The squeeze in supply has ensured sharp increases in price along with another key factor – as a strongly community centred area, Ballyfermot experiences a far stronger demand than most other areas from grown up locals trying to buy back in to their locality.

The coming year won't see prices increase above the initial 2013 surge, but with no increase in supply likely, values are likely to add well over 1% per month in 2014.

The Prices:

2-up/2-down:

Jan 2013: €90,000

Jan 2014: €130,000

Jan 2015: €151,000

3-bed terrace:

Jan 2013: €90,000

Jan 2014: €130,000

Jan 2015: €151,000

Two-bed cottage:

Jan 2013: €70,000

Jan 2014: €115,000

Jan 2015: €133,000

Ex-corporation 2-bed:

Jan 2013: €90,000

Jan 2014: €130,000

Jan 2015: €151,000

Ex-corporation 3-bed:

Jan 2013: €90,000

Jan 2014: €130,000

Jan 2015: €151,000

3-bed Semi:

Jan 2013: €125,000

Jan 2014: €156,000

Jan 2015: €181,000

Irish Independent

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