Dublin 15: Castleknock performs well but D15 falls by 5pc overall
Dublin 15 is one of the most diverse postcodes in Dublin and there is a huge difference in the types and cost of property available in its different areas. But after a value surge in 2014 of 13pc, it became one of the only markets nationwide to shed value through the last 12 months with slippages of 5pc estimated by our local experts.
"We were in uncharted waters last year," says Andrew Rafter of Flynn & Associates. "It was hard for people to move from a three-bed to a four-bed and we saw investors selling off because of the more onerous requirements on landlords even despite good rental returns. Although the market is moving again now, there remain challenges ahead in terms of finance."
Although pockets of Dublin 15 performed well during 2015 - Castleknock being one such location, Rafter is reporting an overall decline in values for the postcode.
"We saw a significant drop in the number of parties viewing properties," says Rafter, "and there was less aggressive and competitive bidding as compared to what we saw in 2014.
"Bungalows are one property type that have done well though, because new developments tend not to cater for older people who are downsizing, so there is great demand for good quality versions.
"The three-and-a-half times income requirement for mortgages has made the apartment market tricky, and we have seen a greater volume of ex-corporation three-bed houses changing hands than in previous years.
"There has also been an increase in demand for larger detached houses, with substantial amounts of cash available from buyers based in the US and UK. The strength of both sterling and the dollar is a huge factor.
"There has been a significant introduction of new homes into Dublin 15 over the past year, and these were attractive in terms both of their BER A-rating and location. These have sold out now and there may not be so many new houses in the area during 2016. I'm expecting to see a revival of interest in some of the established, older estates that are close to public transport. I can already see people zoning in on specific areas in the second-hand market. The second-hand houses often have better space and layout, and private gardens, which many of the new developments don't have."
Rafter is also seeing a growing appreciation of Phoenix Park as an amenity, with some competitive bidding for homes located close to the park, which are convenient to good schools and within cycling distance of the city centre.
The agent is predicting slight growth through 2016 of a couple of percent.