Families have been buying 50/50 against investors in this popular part of North Dublin which saw strong growth again to mirror 2013's rate of 15-20pc. Cash buyers accounted for half of all sales, showing a continuing strong interest says DNG's Vincent Mullen.
"Investors were selling off to each other after a bump in prices, especially in the Pre-1963 market which is more popular now than previously.
There has been a ban put on bedsits, so some of these may have had 10 units but need to be remodelled to six.
All along the North Circular Road there are renovations and attractive yields of 10pc per annum to encourage investment," he says.
|2 Up/2 Down,||€175,000||€200,000||€210,000|
|Ex-corporation 2-bed ,||€180,000||€220,000||€231,000|
|2/3 Storey over Basement,||€350,000||€415,000||€436,000|
|4/5 Storey over Basement,||€400,000||€500,000||€525,000|
Mullen cites a typical example of a house in very poor condition with 10 units selling for €230,000 but a new yield, from fewer units, at €45,000 per annum.
That, coupled with the purchase before year end to avail of the capital gains exemption could well see an investor clearing the loan when it reverts back for sale in seven years.
Credit is still limited but those with loan approval saw completions fairly quickly.
The Luas at Cabra will have a major effect on this market in 2015 which is why Mullen is pegging growth at a higher level here than elsewhere - in the region of 10-12% versus the 5% earmarked for the area in general.
"The market sits while there's talk about it, but the works have actually started now so the prices will be impacted," he says.
The implementation of Central Bank rules on deposits will cause rents to "go through the roof", according to Mullen.
"Builders may not build; supply will reduce and put pressure on existing lets. First-time buyers will be priced out of the market". He thinks any higher deposit limits should be introduced in a staged manner over time.
There's plenty of cash still around with good viewing numbers. Some are only starting to look now and Mullen says some novice investors weren't even aware of the CGT expiry.
He cites the CSOs figures as 'three or four months behind' and it may look as if prices are still rising faster than reality. "To be honest, February prices are really September closes," he adds.