Sunday 15 September 2019

Dublin 6W: Cash sales remain 'unbelievably' high in D6W

Average Price: €600,000
Areas: Terenure, Kimmage, Harold's Cross, Wainsfort, Templeogue
Up: + 13%
One Year Forecast: + 8%
Assessing Agent: Sherry FitzGerald

Neil Harper of Sherry FitzGerald forecast a busy year for the Dublin 6W region for 2014, and so it turned out, with an average upwards surge of 13pc. Good-sized family homes remain at a premium.

Multiple bidders were common in the family sector through much of 2014 and Harper puts this down to the fact that it is one of the best areas for schools.

129 Mount Tallant Avenue, Terenure, sold in November 2013 for €235,000, sold again in October 2014 for €410,000, an increase of 74%.
129 Mount Tallant Avenue, Terenure, sold in November 2013 for €235,000, sold again in October 2014 for €410,000, an increase of 74%.

"It's one of the first things to tick people's boxes", he says.

"They want to be within shouting distance of them, it's a huge draw."

Dublin 6W
House Types201420152016
3-bed Semi, €495,000 €550,000 €594,000
4-bed Semi, €530,000 €600,000 €648,000
4-bed Detached, €750,000 €850,000 €918,000
5-bed Detached, €875,000 €925,000 €999,000
3-bed Bungalow, €360,000 €550,000 €594,000
4-bed Bungalow, €590,000 €800,000 €864,000
1-Bed Apartment, €145,000 €175,000 €189,000
2-bed Apartment, €280,000 €315,000 €340,000
1-bed Cottage, €180,000 €220,000 €238,000
2-bed Cottage, €260,000 €320,000 €347,000
Ex-Corporation 2-bed, €275,000 €315,000 €340,000
Ex-Corporation 3-bed, €360,000 €400,000 €432,000
3-bed Townhouse, €315,000 €350,000 €378,000
3-bed Mews, €390,000 €450,000 €486,000

Lack of supply was a significant factor in the first six months of the year with prices rising at nearly 2pc per month, but in more recent months increased properties have come to market to meet demand and this frantic growth has tapered off.

The new Central Bank requirements on deposits will also affect first-time buyers next year and Harper would prefer, like many estate agents, to see a phased or tiered introduction rather than a blunt imposition of 20pc deposits overnight.

RATHGAR: Particularly traditional Victorian red-bricks ideal for growing families.
RATHGAR: Particularly traditional Victorian red-bricks ideal for growing families.

"That said we don't want to see prices rising at a rate of knots - 5pc or 6pc is ideal."

He reckons sales may cool until May or June while the situation settles but he doesn't see this year's growth factor being replicated in 2015 in any event, rather a more measured level of activity.

The Capital Gains Tax deadline of year end didn't have a very pronounced effect here, but many pre-1963 properties are now being redeveloped for student occupation.

Those who have been priced out of the adjacent D6 postcode migrate with compromise here - they get all the facilities without the price tag.

There is some better movement from those trading down - a mixture of added impetus to sell with rising house prices and the increased maintenance and property tax costs of larger family homes saw empty nesters moving aside for young families.

Cash sales remained "unbelievably high" during the year with up to 35pc of transactions in this category.

Vendors still favour the cash buyer for obvious reasons and are nervous about banks following through on mortgage deals.

Harper says there is a lack of clarity around the closing off of sales. He sees many first-time buyers getting cash from parents and there was an element of ex-pat cash also coming from abroad.

"I expect to see a much more realistic 5pc to 8pc uplift through 2015" he says.

Independent.ie Guide to House Prices in Ireland

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