Sunday 22 September 2019

Dublin 12: Dearth of rental stock pushing up home values

Average Price: €300,000
Areas: Perrystown, Terenure, Walkinstown, Drimnagh, Crumlin, Bluebell, Kimmage
Up: + 20%
One Year Forecast: + 10%
Assessing Agent: Murphy Mullan Estate Agents

Dublin 12 is a wide-ranging market with average house types going from as little as €150,000 to as much as €500,000 depending on location.

Most in demand are family and starter homes, so agent Johnnie Mullan sees any hike in deposit requirements by the Central Bank set to have a detrimental short-term effect on this market.

3 Crotty Avenue, Walkinstown, Dublin 12, sold in December 2013 for €180,000 and again in July 2014 for €303,000.
3 Crotty Avenue, Walkinstown, Dublin 12, sold in December 2013 for €180,000 and again in July 2014 for €303,000.

He noted however that the bulk of buyers have tended to have deposits of more than 20pc in many cases and lower loan-to-value ratios were the norm.

"These would be people renting a long while, maybe five or six years, and persuaded to buy last year after seeing 2013's growth," he says.

Dublin 12
House Types201420152016
3-bed Semi, €300,000 €360,000 €390,000
4-bed Semi, €350,000 €425,000 €460,000
3-bed Bungalow, €350,000 €400,000 €430,000
4-bed Bungalow, €395,000 €430,000 €450,000
1-Bed Apartment, €110,000 €140,000 €155,000
2-bed Apartment, €140,000 €175,000 €190,000
3-bed Terrace, €220,000 €270,000 €295,000
Ex-Corporation 2-bed, €170,000 €195,000 €215,000
Ex-Corporation 3-bed, €190,000 €210,000 €230,000
2-bed Townhouse, €240,000 €290,000 €310,000
3-bed Townhouse, €265,000 €310,000 €340,000
3-bed Duplex, €190,000 €230,000 €250,000

With much of the housing stock 50-100 years old, executor sales make up a large proportion of the sales book.

Supply is still a big problem and Mullan sees this pressure continuing for the foreseeable future.

PERRYSTOWN: There are larger family homes which are older with good back gardens. It's cheaper than Templeogue and a little known, 'cracking area' to live in.
PERRYSTOWN: There are larger family homes which are older with good back gardens. It's cheaper than Templeogue and a little known, 'cracking area' to live in.

There was good activity at viewings with 25/30 people turning up for first viewings up to July.

However this huge level of interest tailed off significantly after August but properties are now still achieving good prices with two or three solid bidders chasing in most cases.

Cash sales also fell off in the latter half last year and in this lower/middle price point market the Capital Gains Tax deadline had little impact. He also notes the growing shortage of rental stock, a dearth of which has helped pushed up prices here.

"There's a lack of decent units and many tenants are now being pushed into buying by recent increases in rent."

The rental market is very strong here and the biggest driver on ex-corporation houses. He cites a sample property selling at €200,000 with an investor yield of €1,300pm, but a buyer would only pay up to €900 for a mortgage on it, a saving of €400 a month.

"There's continued demand to buy as a result as long as that disconnect exists," says Mullan.

He anticipates growth of up to 10pc during 2015.

Independent.ie Guide to House Prices in Ireland

We have surveyed estate agents in every corner of the country to bring you the most comprehensive guide to house prices in Ireland. Whatever type of home and area you are interested in, the details are just a click away using the links below. 

Irish Independent

Also in Business