Wednesday 12 December 2018

Dublin South County: Critically low supply in south county continues

‘Roselea’, 16 Marlborough Road, Glenageary, sold last July for €1.58m
‘Roselea’, 16 Marlborough Road, Glenageary, sold last July for €1.58m

The supply of houses coming to the market remains critically low in South County Dublin, a market which includes Dún Laoghaire, Blackrock and the twin peaks of Dalkey and Killiney, which hold some of Ireland's most expensive houses.

While shortage has applied an upwards pressure on prices, the high price of homes in this location coupled with lending restrictions, has kept inflation restrained to some degree - it's now running at close to 6.5pc per annum, according to our local expert.

"Prices at the lower end of the market and in particular in the apartment sector have seen the sharpest growth," says local agent Wade Wise, "with a more modest growth observed at the upper end."

An example of the smaller property fetching more is the sale of a two-bedroom apartment in Woodview, Blackrock, for €500,000. "The property attracted interest from investors drawn by soaring rents, first-time buyers and downsizers, all looking to purchase well- located apartments in established developments," says Wise.

"We anticipate that this segment of the market will continue to perform strongly in the short to medium term as the costs associated with the building of new stock of apartments is currently prohibitive for developers."

Wise also notes that the relaxation of the Central Bank's lending rules increased the availability of credit for buyers who were very active up to the €600,000 price bracket, and he expects house price inflation in this sector of the market to continue throughout the year ahead.

"The family home market was buoyant," says Wise, "with three- and four-bedroom homes in mature established areas of Blackrock, Mount Merrion and Booterstown being particularly sought-after. Strong prices for homes in need of an upgrade were were achieved at No. 28 Cypress Road (€792,000), No. 24 Dargle Road (€720,000) and No. 22 Leopardstown Park (€680,000).

Brexit has been swinging the market both ways at the top. Wise says that fallout from Brexit could be felt as early as last spring, particularly at the top end of the market, which he defines as houses priced at €1.5m-plus.

"A weakening sterling affected the buying power of returning Irish expats," he explains. "As last year progressed, however, confidence that IT and financial services sectors might benefit from Brexit exerted a positive impact at the top end of the market. A substantial terraced residence in Longford Terrace, Monkstown, needing upgrading sold for €1,725,000."

Wise says that he expects the supply of houses for sale to remain critical this year, while demand for South County Dublin will be undeterred.

He is predicting house-price inflation will remain at a solid 6pc with certain pockets of the market up to €600,000 experiencing higher rates of growth.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Editors Choice

Also in this section