Tuesday 17 September 2019

Dublin 14: Shortage of supply will keep prices on up

Average Price: €515,000
Areas: Churchtown, Clonskeagh, Dundrum, Goatstown, Balally, Kilmacud, Milltown, Windy Arbour, Rathfarnham
Up: + 18%
One Year Forecast: + 7%
Assessing Agent: Macarthy Auctioneers

Dublin 14 prices increased depending on locality in this varied South Dublin location by between 15pc and 20pc following a 2013 increase of 22pc.

Shortage of supply was a key issue affecting the area, like many others. Agent Cathal Macarthy saw a good level of cash savings accumulated by buyers and banks prepared to lend more.

46 Lower Churchtown Road, Churchtown, Dublin 14, sold in 2014 for €680,000.
46 Lower Churchtown Road, Churchtown, Dublin 14, sold in 2014 for €680,000.

He expects supply to continue as a driver of sales this year although Central Bank requirements on deposits are expected to slow the increase in growth.

However, in the majority of his transactions, the loan-to-value ratio are much lower than the 80pc expected, with the odd exception.

Dublin 14
House Types201420152016
3-bed Semi, €380,000 €425,000 €450,000
4-bed Semi, €420,000 €475,000 €500,000
4-bed Detached, €550,000 €650,000 €675,000
5-bed Detached, €575,000 €725,000 €750,000
3-bed Bungalow, €380,000 €450,000 €475,000
2-bed Apartment, €230,000 €250,000 €275,000
2-bed Cottage, €220,000 €325,000 €350,000
Ex-Corporation 2-bed, €180,000 €250,000 €275,000
Ex-Corporation 3-bed, €210,000 €300,000 €325,000
2-bed Townhouse, €270,000 €300,000 €325,000
3-bed Townhouse, €285,000 €360,000 €380,000
"Detached 1,500-2,000 sq ft", €650,000 €850,000 €875,000
"Detached 2,000+ sq ft", €1,500 €1,500 €1,600
2/3 Storey over basement, €600,000 €750,000 €775,000

In properties up to the €300,000 mark, very few were over this prudent level and those houses at the higher end, generally bought by trader-uppers, were mostly secured with 50pc mortgages.

Cash sales still accounted for 50pc of the total and ­investors were interested in one and two-beds in the main.

THE CRANNAGH, RATHFARNHAM: 1930s-built houses, near schools. Four-beds will go here for €850,000 despite many needing some level of refurbishment.
THE CRANNAGH, RATHFARNHAM: 1930s-built houses, near schools. Four-beds will go here for €850,000 despite many needing some level of refurbishment.

The vast bulk of sales were either from those trading down with many empty nesters being tempted by better prices this year.

"Many of those in Clonskeagh and Dundrum have lived there for 40 or more years.

If I could get 40 two-beds in these areas I'd sell them to these people; they want to stay near the village, church and community facilities and their families".

Executor sales made up about half of McCarthy's book. However, it was mainly owner-occupiers purchasing here with a small percentage of investors availing of the CGT deadline towards ­December.

With interest rates so low, McCarthy sees future ­buoyancy in the market but with a slower rate of increase.

Given its proximity to the city centre (under 7km), and the service of the Luas, demand is expected to remain high with price increases of 5-8pc anticipated.

Independent.ie Guide to House Prices in Ireland

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