Surge in capital's property prices set to cool this year
THE surge in Dublin property prices is to ease by a third or more this year as investment-led cash buyers peter out or turn their attention to other cities like Cork and Galway.
House values in the capital have risen by an average of 17pc during the last 12 months, according to 'How Much Is Your House Worth? 2014', a nationwide property price survey published today by the Irish Independent.
Prices will continue to go up this year but estate agents in Dublin expect the growth rate to settle at around 10pc.
Dublin 14 proved to be the country's hottest market, with values increasing by 22pc, followed by homes in Dublin 8, Dublin 12, Dublin 20 and Dublin 24, all up by 20pc.
An example of the rampant price inflation that makes Dublin 14 Ireland's hottest property market is the recent sale of a three-bed semi-detached bungalow at 32 Harlech Crescent in Clonskeagh, Dublin 14.
The price of €740,000 achieved by the Ganly Walters agency in November represents a 66pc increase on the €445,000 sale of another house on the same road just nine months previous.
Dublin 14 estate agent Cathal MacCarthy described typical one-year value increases of between 20pc to 25pc in his area as "completely unsustainable". He believes the banks will start refusing to lend for properties which range too high in price and, as a result, this year's increases will be limited to around 8pc.
In complete contrast, the worst performing markets nationally were Monaghan, where prices fell by 14pc, and Offaly (down 12pc): the only two counties nationwide to see values fall in double percentage digits.
This week saw the sale in Monaghan town of a 10-bedroom period property and former guesthouse residence at Hill Street for just €90,000 through Monaghan Property Sales Ltd.
The 3,000 sq ft property had been placed on the market a full year ago, seeking €150,000. The sale price represents a 40pc price cut in just 12 months.
However, the survey of more than 60 estate agencies showed that almost all counties can expect price rises in 2014 with agents in just two counties (Offaly and Sligo) estimating further value falls this year.
Unlike the recent CSO data which is four months behind the market and excludes cash buyers, the Independent's survey covers current achievable prices.