Friday 20 September 2019

Dublin 4: Cash sale family homes leading march over 'trophy' investments

Average price: €715,000
Areas: Ballsbridge, Ringsend, Irishtown, Sandymount, Donnybrook, Merrion
Up: + 20%
One Year Forecast: + 7%
Assessing Agent: Sherry FitzGerald

Dublin 4 is always a hotspot for property activity but it was much more heated in the first half of the year according to Christopher Bradley of Sherry FitzGerald.

"The highest inflation of the last twelve months was for family homes which were in short supply," he said.

25 Ailesbury Road, Ballsbridge, Dublin 4, sold in August 2014 for €3.1m
25 Ailesbury Road, Ballsbridge, Dublin 4, sold in August 2014 for €3.1m

Those priced up to €600,000 were most sought after while homes at the €1m mark also had a big uplift year on year, especially in Sandymount.

"There's pent-up demand from families in Sandymount while sellers of older properties had held out until the price was attractive enough to sell up."

Dublin 4
House Types201420152016
3-bed SEMI, €565,000 €700,000 €753,000
4-bed Semi, €700,000 €825,000 €887,000
5-bed Semi, €925,000 €1,100 €1,182
5-bed Detached, €1,000 €1,200 €1,290
3-bed Bungalow, €550,000 €650,000 €699,000
4-bed Bungalow, €600,000 €700,000 €753,000
1-Bed Apartment, €225,000 €275,000 €296,000
2-bed Apartment, €350,000 €420,000 €452,000
2up/2Down, €375,000 €425,000 €457,000
3-bed Terrace, €390,000 €460,000 €495,000
2-bed Cottage, €350,000 €425,000 €457,000
2-bed townhouse, €350,000 €390,000 €419,000
3-bed townhouse, €400,000 €460,000 €495,000
2-bed Mews, €575,000 €700,000 €753,000
3-bed Mews, €690,000 €850,000 €914,000
3-bed Duplex, €450,000 €550,000 €591,000
Period 2/3 storey over basement, €1,100 €1,400 €1,500
Period 4/5 storey over basement, €1,500 €1,750 €1,880
"large detached period, own grounds", €2,500 €2,900 €3,117

Perhaps surprisingly, cash sales are still leading the march in Dublin 4 with Bradley reporting well over 50pc such transactions through the last year of sales.

"It will be interesting to see where that goes," he says.

SANDYMOUNT: Due to demand for good family homes in an always popular area.
SANDYMOUNT: Due to demand for good family homes in an always popular area.

"People buy in this area for family living, not for investment purposes because investors just won't get the yields to make sense.

"But those cash buyers who had been sitting in rentals, perhaps having sold up already, along with returning expats have been getting cautious.

"The day of vendors favouring the cash buyer over the mortgaged one is waning.

The loans are more secure and available so if buyers can show proof, vendors are happy to take their offers".

The first half of the year saw an over-correction according to Bradley. Prices had jumped up "too quickly" due to a tightening on stock.

However after the summer, as more properties came on the market, the 'frenzy' to buy lessened.

"They're still selling quickly, but not frantically". Bradley welcomes this return to what he calls a 'normal' market.

At the 'trophy home' end where the air is more rarefied, he noticed a much bigger demand for the "cheaper" top end rather than the €2m/€3m range which had done better when obvious value was on offer.

Around 59pc of properties have gone in excess of the asking price for much of the last year but this may already be changing.

"It will have a knock-on effect as professional people are priced out of Dublin 4 and migrate to Blackrock and other upmarket but less expensive locations".

He sees 2015 increasing in single digit percentages as Central Bank deposit requirements kick in.

Independent.ie Guide to House Prices in Ireland

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