Monday 16 September 2019

Dublin 2: Grand Canal views add €100k to sought-after apartments

Average Price: €350,000
Areas: South City Centre, Quays, Grand Canal Dock, Pembroke, Leeson, Temple Bar
Up: +25%
One Year Forecast: +10%
Assessing Agent: Owen Reilly Property Consultants

"Water views," says agent Owen Reilly when asked about the single biggest factor affecting the price of central apartments in Dublin 2. "You can easily add €100,000 on to a nice property when it overlooks Grand Canal Dock".

Sales on all apartments exceeded expectations during 2014 due, in part, to the Capital Gains Tax deadline looming, but also for investors and owner-occupiers irritated at the low deposit rates in banks.

20 Herbert Street, Dublin 2, sold in January 2013 for €675,000 and sold again in August 2014 for €700,000, an increase of 3.7pc.
20 Herbert Street, Dublin 2, sold in January 2013 for €675,000 and sold again in August 2014 for €700,000, an increase of 3.7pc.
Alto Vetro tower on Grand Canal Dock, the D2 hotspot.

"They decided to make a move to buy which was was coupled with sellers who had held out for price, saw a surge and let go".

There had been a supply mis-match for three quarters of the year with a pent-up demand from renters in this area.

Dublin 2
House Types201420152016
1-bed apartment, €180,000 €250,000 €275,000
2-bed Apartment, €250,000 €300,000 €330,000
2up/2Down, €275,000 €325,000 €358,000
3-bed Terrace, €330,000 €400,000 €440,000
1-bed Cottage, €180,000 €240,000 €264,000
2-bed Cottage, €250,000 €300,000 €330,000
Ex-Corporation 2-bed, €280,000 €350,000 €385,000
Ex-Corporation 3-bed, €330,000 €410,000 €451,000
2-bed Townhouse, €250,000 €310,000 €341,000
3-bed Townhouse, €325,000 €400,000 €440,000
2-bed Mews, €400,000 €500,000 €550,000
3-bed Mews, €450,000 €570,000 €627,000
3-bed Duplex, €300,000 €380,000 €418,000
Period 2/3 storey-over basement, €600,000 €750,000 €825,000
Period 4/5 storey-over basement, €1,250 €1,400 €1,540

The upward pressure on price encouraged more sellers on to the market who had put off trading up to now.

The biggest change was seen in the one-bed apartment sector which, at €250,000 on average, has seen a 35-40pc mark up on this time last year.

GRAND CANAL DOCK: With Hanover Quay development set to go ahead and the cleaning up of the general area, demand remains extremely high
GRAND CANAL DOCK: With Hanover Quay development set to go ahead and the cleaning up of the general area, demand remains extremely high

Reilly has "loads" of examples where much higher prices were achieved and recently sold a one-bed in the Gasworks development for €300,000 given its views towards the Aviva stadium and south facing aspect.

He expects apartments at Hanover Quay to continue selling upwards of €500,000 in 2015 but sees a tapering off of the high jumps in price, towards 8-10pc.

Foreign cash has had a huge impact in the area, but with pension funds and REITs accounting for the activity.

Many bulk deals are being done on larger developments but these are not re-entering the market; instead they are being held for rental yield.

"It's a new departure for the Dublin property market," says Reilly and it certainly won't help supply in the sale sector, but it will be interesting to see if it calms the rental market as supply is added.

"Construction is getting moving now but if they are bought up in bulk like this it will skew the market", concludes Reilly.

Independent.ie Guide to House Prices in Ireland

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