Dublin West County: Apartment prices set to surge in Dublin West
New developments at St Helen's in Adamstown, and Somerton and Shackleton Park in Lucan have taken a number of buyers out of the market in West County Dublin, but demand remains strong and there is a shortage of homes in many categories. This means that prices in West County Dublin have risen by an average of 8pc over the past 12 months.
Local agent David Lewis says that the banks will come under pressure to release distressed properties onto the market in the second quarter this year, to help alleviate the housing crisis.
"The push from developers is towards three-bedroom houses, but there is a pent-up demand for apartments. No one is building apartments, but they are what the investors want, and the demand from renters is strong."
Because of this, Lewis predicts house-price inflation of 6pc across the board this year, but that apartments will grow in value by 10pc.
Lewis says that buyers often say to him that they would prefer to buy a house than an apartment, because there are no service charges associated with houses.
"Last year, I saw service charges starting to creep in in the new developments. They may start out at just €400 per annum, but of course that will go up as time goes on. So as a reason for choosing a house over an apartment, that may not be valid any longer."
Although there are shortages of second-hand three-bed semi-detached houses and one- and two-bedroom apartments, Lewis reports that the demand at the top end of the market is "soft" and that the market is flooded with three-bedroom duplexes in Adamstown. These are now coming back on the market as the original owners seek to trade up.
"Family houses on the older modern estates - those built between 2000 and 2002 - are still very popular," says Lewis. "Prices range from €280,000 in Foxborough and Earlsfort to €300,000 in Abbey Wood and Colthurst, and up to €335,000 in Griffeen Glen.
And there is such demand that the market can take all the new releases of family homes as well. There are lots of phases still coming, and many first-time buyers really want the A rating with lower heating costs, even though they don't get the fit-out or the landscaping or the carpets and curtains that they'll get in a second-hand house. It's swings and roundabouts. The new houses definitely attract a premium because of the energy rating, but the buyers have to come up with some extra money to cover those costs."