JOHN O'KEEFFE
Property Editor
HOUSE prices along the proposed new Metro line in Dublin in areas such as Ballymun, Blanchardstown and Clondalkin are set to rocket, according to leading estate agents in the capital.

The recent Government Transport 21 proposals relating to the greater Dublin area mean that areas that have not seen as large an increase in house prices over the last five years, may now equal, if not exceed, those of the more established Dublin neighbourhoods.

Keith Lowe, managing partner of auctioneers Douglas Newman Good, is in no doubt what the new transport plans will mean. "In the past, the south side of Dublin seems to have benefited disproportionately, never more evident than the exceptional increase in southside property prices with the introduction of the new Luas service.

"However, the Government proposed Metro system from Dublin city centre through Ballymun, via the airport and out to Swords, will have a dramatic effect on properties located close to the new stations," he says.

The Northside looks set to be the new south side where prices are concerned over the next 10 years.

As a predictor of things to come with the Metro, the arrival of the Luas saw a far higher increase in property prices along both lines then even the most optimistic of agents might have hoped for.

In the south side of Dublin, the DNG house price gauge showed that residential property located close to Luas stations have risen by over 20 per cent more than properties not serviced by Luas over and above normal market rises.

"We have also noted that no style or type of house has been exempt from these exceptional price rises and all of these recent announcements will undoubtedly lead to above-average price rises in property prices in these particular areas," Mr Lowe told the Sunday Independent.

Mr Lowe predicts that there will be some short-term property price inflation when the specific routes are detailed and a further surge in price inflation when the actual works commence.

Either way it would appear that canny buyers will now be studying the proposed Metro line closely.

Leaving aside Brian Cowen's grand plan for "a New York-style Grand Central Station under St Stephen's Green", the Metro appears to have caught the imagination or every potential purchaser in the capital.

The proposed Metro route will be from Tallaght to Swords on one line and from Swords to St Stephen's Green on the other. It is also proposed that extra Luas lines will run to Citywest and Lucan while the existing Sandyford line will run to Bray.

Ken MacDonald, MD of Hooke & MacDonald, said that lands situated next to and within close proximity to the proposed new Luas and Metro lines will become prime locations for high-density, high-quality residential development.

Mr MacDonald believes, however, that "it is vital that local authorities take into account the new public transport routes when assessing planning applications for new residential development."

He predicts that areas to watch for price rises will include The Docklands, Cherrywood, Bray, Citywest, Adamstown and Belcamp.

Marie Hunt, director of research at property consultants CB Richard Ellis Gunne, concurs with Mr Lowe's and Mr MacDonald's analysis and says that "property values in many locations throughout the country will undoubtedly be boosted as a result of last week's announcement though the full impact on property values is unlikely to be experienced until such time as the infrastructure is in situ."

Ms Hunt also sees the Docklands as being a major beneficiary of the inter connector and the extension of Luas, while improvements in transportation to the south and west suburbs of the capital, she believes, "will encourage the development of successful schemes which, up until now, have not been feasible".

The Government's transport ambitions are likely to have a significant ripple effect on house prices across the country.

For commuters living outside Dublin, the Transport 21 promises a line to Navan and upgrades on the Kildare line to the south west.

House prices, already high in this commuter belt area, are likely to rise even further on the back of the Government announcement.

If the Government is right, Meath commuters will be able to get to Dublin in a mere 65 minutes, making it a hugely attractive commute to this current generation of weary travellers.

Proposed rail links around the country too will ensure that house prices in the surrounding areas will see a marked increase.

Particular areas that are likely to benefit from the programme are Waterford, where car journey time to the capital will be cut by an hour and Cork which will have some 40 minutes shaved of travelling time to Dublin.

Trains on the hour from Dublin to Galway, Cork and Limerick will have a profound effect and it is expected that there will be an increase in commuters from these three cities to Dublin.

Further proposals, such as the 70km of bus lanes in Cork and 850km of dual carriageway, means that most home owners across the country will see some sort of increase in their house value as a spin-off from the Government's ambitious transport plans.

The predicted soft landing for the housing market may therefore be just a temporary phenomenon before another take off.