Monday 23 September 2019

Dublin 18: Threat of credit block is slowing suburbs' recovery

Average Price: €595,000
Areas: Carrickmines, Foxrock, Stepaside, Leopardstown, Cabinteely, Brennanstown, Cherrywood, Loughlinstown
Up: + 3%
One Year Forecast: + 5%
Assessing Agent: Sherry FitzGerald

Dublin 18 has experienced a dramatic slowdown in activity and demand through the last twelve months after 14pc growth in 2013.

This is being attributed largely to a severe overcorrection starting in the last quarter of 2013 when prices suddenly exploded.

Melmore, Mullinastill Road, Rathmichael, Dublin 18, sold in August 2014 for €1.1m.
Melmore, Mullinastill Road, Rathmichael, Dublin 18, sold in August 2014 for €1.1m.

Sherry FitzGerald's Ronan O' Hara says D18 has experienced a levelling out on almost all property types, especially at the luxury end, with demand remaining strong only on four-bedroom semi-detached and detached homes.

The latter are supplied by 'empty nesters' who weren't happy to sell at past prices but are only now letting their houses go because of property tax and space surplus.

Dublin 18
House Types201420152016
3-bed Semi, €575,000 €575,000 €604,000
4-bed Semi, €595,000 €595,000 €625,000
5-bed Semi, €750,000 €750,000 €788,000
4-bed Detached, €675,000 €775,000 €814,000
5-bed Detached, €1,000 €1,100 €1,155
3-bed Bungalow, €500,000 €650,000 €683,000
4-bed Bungalow, €600,000 €750,000 €788,000
1-Bed Apartment, €175,000 €200,000 €210,000
2-bed Apartment, €290,000 €325,000 €341,000
Ex-corporation 3-bed, €325,000 €350,000 €368,000
2-bed Townhouse, €325,000 €325,000 €341,000
3-bed Townhouse, €400,000 €400,000 €420,000
2-bed Mews, €350,000 €425,000 €446,000
3-bed Duplex, €365,000 €410,000 €431,000
"Detached 1,500 � 2,000 sq ft", €675,000 €775,000 €814,000
"Detached 2,000+ sq ft", €1,000 €1,000 €1,050
Bungalow acre, €970,000 €970,000 €1,019
Bungalow acre+, €1,000 €1,000 €1,050
"Large Detached Period, own grounds", €2,000 €2,000 €2,100

Prices jumped too much at the end of 2013 and the beginning of 2014, explains O' Hara, most likely due to a sense that the market had been restored and was on a one-way trajectory.

Now a still restrictive credit supply has meant that agents don't hold out too much hope of a big increase during 2015 - up to a maximum of 5pc at best, according to ­ O' Hara.

HAINAULT ROAD: Has precisely the houses people want - a four-bed semi or detached with large gardens and plenty of privacy.
HAINAULT ROAD: Has precisely the houses people want - a four-bed semi or detached with large gardens and plenty of privacy.

He adds that it will probably take a new international player in the banking market to shake up things in that direction, with the pillar banks remaining cautious.

Big family homes are the big stalwart of this region which covers the upmarket parts of Foxrock along with school-friendly areas of Cabinteely and Stepaside.

Commuter areas near the M50 access route like Loughlinstown along with employer-heavy regions in Cherrywood, with its Luas line extension, create a good mix of properties in the area, and is representative of much of the South Dublin suburbs.

Dublin 18 isn't a prime location for buy-to-lets, so the Capital Gains Tax deadline at year end didn't have much of an impact on sales here.

"I'd wish it had, but investors prefer to buy out in Google-land and the IFSC rather than the 'burbs," says O' Hara.

"Family detached houses are where there is good demand and those who are finally letting go of large homes they reared their children in for 40 years, are getting better prices for them now than they might have a few years ago."

O' Hara reckons many of those stuck in smaller duplexes or townhouses are anxious to trade up but credit and negative equity are still bugbears to be resolved, especially in the buy-to-let sphere.

Independent.ie Guide to House Prices in Ireland

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Irish Independent

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