South County Dublin: Prices are feeling the Brexit impact
Homes in the south county area rose in value by 6pc in the year to date and prices have been rising particularly fast at the lower end of the market. This is a market which includes some of Dublin’s top end trophy homes in areas like Dalkey and Killiney as well as more affordable properties in locations like Sallynoggin and Shankill.
For Wade Wise of Beirne & Wise, the overriding feature of 2016 was that despite a year of domestic, European and world political uncertainty, the property market remained reasonably solid in the south county.
“In the spring of 2016, with the continued restricted supply of available property at all levels of the market, prices rose, most notably at the lower end, with more modest growth at the upper end" says Wise.
"The family home market was very buoyant with three to four-bed homes in mature established areas of Blackrock, Mount Merrion and Booterstown being particularly sought after. A house at 25 Glenabbey Road Mount Merrion sold for €860,000, 15 Priory Road, Blackrock sold for €800,000 and 52 Waltham Terrace, Blackrock Sold for €1,463,000.
“As well as domestic factors, impacts from abroad are being felt with a big barrier placed in front of Irish nationals returning from Britain who have for the last few years been targeting high end homes in the south county area in particular. The immediate impact of Brexit could be felt over the summer months particularly at the top end of the market, with houses priced at €1,500,000 plus. A weakening sterling affected the buying power of returning Irish expats, while the continued uncertainty of the fall-out of Brexit is now a consideration for domestic buyers seeking to purchase at the top end. The impact has been less pronounced at the middle to lower end.”
With the unexpected dampening effects we also see similarly unexpected inflationary factors. There was an unseasonal increase in the volume of sales in the last few months, due in part to the number of measures introduced to ease lending restrictions for first time buyers.
“Our expectation is that the supply of houses for sale will remain limited and that we will see more loan approved first time buyers eager to purchase early in 2017.”
As a result Wise reckons that house price inflation will clock up values by another 5pc for the year ahead.