Friday 15 November 2019

Dublin 5: Pent-up demand spurs bidding wars

Average price: €390,000
Areas: Raheny, Coolock, Artane, Harmonstown
Up: + 15%
One Year Forecast: + 8%
Assessing Agent: Douglas Newman Good

There is very strong demand in this North Dublin suburb, particularly among family buyers says Wayne O'Brien of DNG with activity highest in the first nine months of the year.

There were big increases in both price and bidding numbers. "We had one house in Raheny in the summer which attracted 63 viewers and went €103,000 over guide," he said.

17 Moatfield Avenue, Coolock, sold in May 2014 for €200,000 and again in November 2014 for €240,000, an increase of 20%.
17 Moatfield Avenue, Coolock, sold in May 2014 for €200,000 and again in November 2014 for €240,000, an increase of 20%.

Family homes were much sought after, reflecting pent up demand in the general market.

Things quietened from September onwards as prices levelled off - this area wouldn't have seen much impact from the ending of the Capital Gains Tax exemption although O'Brien recalls one six -bedroom property which had been on the market for several months, clearly investor attractive, suddenly attracting bidders in December as they attempted to close off sales.

D5 benefits from an overspill of the outpriced from expensive Clontarf and Drumcondra.

Credit supply loosened during the year and cash buyers found themselves bidding against loan-approved clients as confidence in mortgage completion improved.

BROOKWOOD AREA: It's between Artane and Raheny and houses are good solid 1950 builds with big gardens and original features. Very popular with families.
BROOKWOOD AREA: It's between Artane and Raheny and houses are good solid 1950 builds with big gardens and original features. Very popular with families.

There was also an increase in the number of buyers returning from abroad and looking to relocate, indicating perhaps an upturn in the wider economy.

Supply was still hampered, says O'Brien, referencing several land banks still undeveloped in North Dublin. "Unless they are released and planning permission stepped up, I can't see the supply situation changing".

People still want to live nearer the city, but what appeared to be a glut of properties appearing on market via bank repossessions around April/May ended up being bulk sold to pension funds and not making it to sale.

O'Brien says the CGT exemption was evidenced here very much as funds closed off before year end. For 2015, he sees lower growth figures, around 8pc, but much is dependent on the introduction of new Central Bank deposit guidelines.

This is a popular area for first-time buyers so they will be affected.

"Twenty percent is a massive leap from 10pc which they may already have saved, so it will definitely slow the market, even if some middle ground is reached," he concludes.

Independent.ie Guide to House Prices in Ireland

We have surveyed estate agents in every corner of the country to bring you the most comprehensive guide to house prices in Ireland. Whatever type of home and area you are interested in, the details are just a click away using the links below. 

Irish Independent

Also in Business