Friday 20 September 2019

Dublin 22: Chaotic market will calm after 'crazy' 2014

Average Price: €240,000
Areas: Bawnogue, Clondalkin, Neilstown
Up: + 15%
One Year Forecast: + 5%
Assessing Agent: Property Partners O'Brien Swaine

Demand and therefore prices surged in Dublin 22 with Paul O'Brien of PP O'Brien Swaine estimating that prices for average homes in the postcode increased by 15pc since last January.

"The year started slowly enough but from March to August it was chaotic, really busy," he says.

27 Oak Way, Clondalkin, Dublin 22, sold in November 2013 for €130,000 and again in October 2014 for €192,000.
27 Oak Way, Clondalkin, Dublin 22, sold in November 2013 for €130,000 and again in October 2014 for €192,000.

He says this kept up right through summer with a mixed bag of first-time buyers, some investors and foreign cash.

However purchases are currently being concluded 70/30 in favour of mortgaged buyers so Central Bank rules which bring in a 20pc deposit as cited, will do serious damage to demand here he says.

Dublin 22
House Types201420152016
3-bed Semi, €175,000 €210,000 €220,500
4-bed Semi, €220,000 €260,000 €273,000
4-bed Detached, €325,000 €350,000 €367,500
3-bed Bungalow, €170,000 €195,000 €205,000
4-bed Bungalow, €190,000 €230,000 €241,500
1-Bed Apartment, €65,000 €75,000 €79,000
2-bed Apartment, €90,000 €120,000 €126,000
3-bed Terrace, €145,000 €170,000 €178,500
2-bed Cottage, €125,000 €150,000 €157,500
Ex-corporation 2-bed , €95,000 €120,000 €126,000
Ex-corporation 3-bed, €110,000 €150,000 €157,500
2-bed Townhouse, €125,000 €150,000 €157,500
3-bed Townhouse, €140,000 €165,000 €173,000
3-bed Duplex, €140,000 €170,000 €178,500
"Detached 2,000+ sq ft ", €320,000 €350,000 €367,500

"I'm not disagreeing in principle with higher deposits but they should be staggered, say 10% up to €300,000 and a higher amount for bigger mortgages which carry more risk to the bank.

"If you have a couple buying at €250,000 which would get you a decent three-bed in Dublin 22, saving €25,000 is just about feasible.

MONASTERY ROAD: It's 'old' Clondalkin, with good family homes in mature estates and big gardens. Always popular.
MONASTERY ROAD: It's 'old' Clondalkin, with good family homes in mature estates and big gardens. Always popular.

"They might have €15,000 themselves and get the remainder from mum and dad or the credit union.

"To double that is crazy and unfair at this lower end of the market. Don't get me wrong - they should stress-test out the door, but not this way."

The most prestigious areas are to be found in the older stretches like Monastery Road and Newlands. Meantime O'Brien says the rental market is extremely busy with not enough houses in the right areas.

Buyers continue to enter this market because it remains relatively affordable for family homes compared with other postcodes.

However O'Brien reports that an increasing number of vendors, have lately been holding an "unreasonable view" of their home's value.

There has been a cooling in recent months and so for this year he sees moderate growth.

But he warns that this very much depends on the Central Bank's next move.

He says 20pc deposits will cut buyer numbers in D20 by 20pc straight away.

Independent.ie Guide to House Prices in Ireland

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