Dublin 4: New reality on prices means D4 might offer better value
A year ago, this report noted the sale during 2017 of a one-bedroom apartment without parking at The Gasworks in Dublin 3 for €365,000. In 2018 a similar apartment with parking made just €2,000 more, evidence of the decline in interest from investors.
"The rent cap has had a big impact," says Chris Bradley of Sherry Fitzgerald. "Apartments are not as attractive to investors as they once were."
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Bradley says that 2018 was a "strange" year, with the impact of tighter lending rules felt across the board.
"We were very busy at the lower end of the market," he reports, "with lots of interest in two-up two-down houses in Ringsend and in apartments. Those both performed very well, and there is still a lot of demand for family homes, the three- and four-bed semi-detached houses. There are very few new homes in Dublin 4, so these values are not being impacted as they are in other parts of the city."
Dublin 4 is a perennially popular location for professional families, thanks to the proximity to the city centre, good public transport links and the accessibility of good schools, including St Michael's, St Conleth's and The Teresian School and others accessible via the Dart.
Even though Dublin 4 has more than its share of high-end properties, there are more three-bedroom homes here than any other property type and plenty of apartments, hence the average price listed here. On average, property values in Dublin 4 are up by 3pc over the past year, and Bradley is predicting a similar level of growth in 2019.
In a location which has had problems with vendors asking too much, those who priced realistically generally won out.
In the last quarter of 2018, a rash of more expensive properties began to sell. The house at 29 Park Avenue made its asking price of €3.25m, and 13 Elgin Road in Ballsbridge sold for €2.365m (more than its asking price) and close to the Aviva Stadium, 30 Vavasour Square made €815,000.
Bradley anticipates the development of new high-end apartments and penthouses will bring more upper-tier properties to the market as the downsizers prepare to move to cosy A-rated homes. "Issues that affect everyone - Brexit, stock, the Central Bank lending rules and consumer confidence - impact on Dublin 4 but as new properties that are priced correctly come to the market, the postcode starts to look like it is offering some better value."