Thursday 21 November 2019

Almost 100 houses sold each day - but Dublin values falling

A lack of construction activity is fuelling house price hikes
A lack of construction activity is fuelling house price hikes

Paul Melia and Mark Keenan

Almost 100 houses are being sold across the country every day, a 30pc increase over the same period of 2014.

And new data shows that the most expensive home sold so far this year was businessman Tony O'Reilly's former estate in Co Kildare, Castlemartin, which fetched €26.5m, one of the largest prices paid in recent years.

The buyer is believed to be media mogul John Malone, who controls UPC among other interests.


He purchased the period house and 750-acres of stud farm and related lands on January 30.

Castlemartin was among 8,994 transactions completed in the first three months of the year, new figures from the Property Price Register show.

But a lack of construction activity and shortage of homes is fuelling price hikes in the property market.

In the first quarter of last year, some €1.3bn was spent across 6,797 transactions ranging from the sale of single homes to entire apartment blocks. The average price per sale was €197,773.

In the same period this year, an extra €586m was spent with transactions

totalling €1.93bn, a rise of 43pc in value terms. This equates to an average sale price of €214,637, a rise of €17,000 or 8.5pc.

However, another survey by the Real Estate Alliance (REA) shows that price rises are not happening across the board. Trends in the Irish property market have in fact completely reversed in the first quarter of this year - with values now static or falling in Dublin while they continue to rise elsewhere.

Prices in Dublin locations have fallen by up to 6.5pc since the start of 2015. The average three-bedroom semi rose in value by 1.32pc nationwide, according to the REA.

Viewed on a six monthly basis, prices outside Dublin (up 5.1pc) have risen at treble the pace of those in the capital (up 1.55pc).

This reverse is being blamed on fallout from the end-of-year expiry of capital gains tax relief, which caused a rush on property at year's end in Dublin, and also on the impact of new lending restrictions from the Central Bank, which again largely impacted on the capital.

The figures from the latest REA Average House Index, commissioned by the Irish Independent, look at real sale values for Ireland's typical stock home - the three-bed semi-detached.


The biggest falls in the capital occurred in and around Skerries in North County Dublin, where prices fell 6.5pc from €310,000 to €290,000 since January.

Not all parts of Dublin saw decreases, however. Tallaght in Dublin 24 saw prices increase by 4.55pc in the first quarter of 2015, led by investors cashing in on more affordable family homes.

Dublin city centre saw prices rise 2.2pc, and Balbriggan rose by 2.5pc.

Irish Independent

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