Monday 10 December 2018

Dublin 2: D2's 'accidental' landlords out of negative equity - and selling

28 Greenore Terrace, Lower Grand Canal Street. Sold on 5/4/17 for €337,500 by Sherry FitzGerald Ballsbridge
28 Greenore Terrace, Lower Grand Canal Street. Sold on 5/4/17 for €337,500 by Sherry FitzGerald Ballsbridge

Values are now back to 90pc of what they were in 2007 says our local property expert in D2.

The result is that boom-era investors who saw the values of their properties tumble by as much as 60pc by 2011 are taking the opportunity to get out of the market as they approach their break-even point.

The last 12 months have been seeing many of these 'accidental' landlords selling up now that they are no longer in negative equity - even if that means waving goodbye to their initial deposit.

Transactions in the postcode are up by quarter on the previous year, according to agent Owen Reilly, with prices up by as much as 14pc in Grand Canal Dock, thanks to the ongoing physical improvement of the area and a strong rental market for everything from one-bedroom apartments to penthouses.

An average of 12pc is more typical across Dublin 2 - considerably more than 8pc predicted last year.

Reilly says that there was stronger price inflation in the first six months of the year, but that this has slowed to 0.4pc per month since the summer.

Other than in Grand Canal Dock, most buyers are owner- occupiers, but in the Docklands area, where it's now hard to find a two-bedroom, two-bathroom apartment for less than half a million euros, investors are responsible for most purchases.

Apartments in developments such as Harcourt Green on Charlemont Street, built in the 1990s - where a two-bedroom apartment with parking sells for around €360,000 - still cost well below the development cost of an equivalent new apartment, says Reilly.

Other areas within the postcode where it is possible to find a two-bedroom apartment for less than €350,000 include the quays, off Dame Street and in Temple Bar, and in buildings such as The Northumberlands near Merrion Square.

"I'm only aware of 15 new apartments - at Hanover Lofts in the South Docklands - completed during 2017," says Reilly. "There are some under construction, but only 310, at Capital Dock and Hanover Quay, due to be competed in 2018, with more the year after."

Reilly says that he has noticed a pick-up in demand for three-bedroom apartments, which are now up by 14pc on a year ago - largely from families and from parents looking for a base in Dublin for children in college with earning potential.

Elsewhere in Dublin 2, houses in locations such as Macken Street, Carlingford Parade, Grand Canal Street and in the South Georgian Core are increasingly seen as an alternative to pricier Dublin 4 and Dublin 6 enclaves, with convenience becoming more appreciated.For 2018, Reilly predicts a 7pc increase in values for properties under €400,000 and 5pc for those above that figure.

Irish Independent

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