Wednesday 26 June 2019

National value of our homes breaks the €500bn barrier

Report shows price rises and more properties coming on stream are boosting nation's wealth

'Average property values nationwide stand at €260,000. This rises to €385,000 for homeowners in Dublin, where much of the country's property wealth is concentrated.' Stock photo: Getty Images
'Average property values nationwide stand at €260,000. This rises to €385,000 for homeowners in Dublin, where much of the country's property wealth is concentrated.' Stock photo: Getty Images
Wayne O'Connor

Wayne O'Connor

More than 200 homes worth more than €1m each were sold in the first three months of this year, new figures show.

The figures show the value of the country's housing stock increased by more than €84m every day this year, fuelled by house price growth and more homes coming on stream.

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However, house price growth is slowing, with one expert warning he expects it to dip to 3pc before the end of the year.

Despite slower growth rates, there are 2,582 homes in the county valued at €1m or more.

Average property values nationwide stand at €260,000. This rises to €385,000 for homeowners in Dublin, where much of the country's property wealth is concentrated.

New research from property website Daft.ie shows the five most expensive streets to buy on are in south Dublin. Meanwhile, the country's 20 most expensive markets are in the capital.

In total, Dublin accounts for 26 of the 30 most expensive markets in Ireland.

However, house prices are cooling, with experts saying new supply coming on stream is playing a significant role in the nation's residential property values.

Year-on-year house price growth is at 5.9pc in the first quarter of 2019, down from 7.3pc in the same period last year.

Property consultant Philip Farrell said Brexit uncertainty has a huge bearing on prices, with people weary of investing in property amid the UK's indecision on leaving the EU. With Brexit still in the balance, he said price growth could slow to 3pc before the end of this year.

"That Brexit uncertainty means people lose confidence in the market and buyers become very weary.

"Brexit still has not gone away and there is a danger it is going to remain a big issue going into the summer and that has an impact on the market.

"With that, prices will continue to cool throughout the year.

"I think by the end of the year we could see price growth come down further to about 3pc."

He said increased housing supply is also having an impact on property values, with the delivery of 18,000 homes last year. This figure is expected to break through the 20,000 mark in 2019.

Ronan Lyons, the author of The Daft.ie Wealth Report, said more homes coming to the market has increased the value of the nation's housing stock. He said the country's two million homes are collectively worth €509bn.

"This marks an increase of just over €30bn in a year," Mr Lyons added.

"While the bulk of that comes from changes in property values, a growing share of the change in Ireland's property wealth is coming from new construction. On average last year, Ireland's stock of homes grew in value by €84m per day - with €15m of that coming from new construction."

Mount Merrion, Dalkey and Foxrock in Dublin are the country's most expensive areas to live in, with average asking prices well above €800,000.

Coliemore Road in Dalkey has been dubbed "Millionaire's Row" in the report. It has seen four properties change hands for an average price of €2m in the past four months.

Average list prices on Coliemore Road this year show a bungalow costs €1.33m, a detached house costs €1.23m, and a semi-detached €1.16m. A terraced house comes in at just over €1m.

Daft.ie's Raychel O'Connell said: "Dublin continues to be the area where most million-euro plus properties and property millionaires are in Ireland. However, the most expensive residential sale so far this year was Kilfinnan Castle, Glandore, Co Cork, which sold in February for €5,732,000."

Outside of Dublin, Enniskerry, Co Wicklow, is the most expensive place to buy. The average asking price here is €638,000. Kinsale is the most expensive address in Munster, with average asking prices of €395,000. Kinvara, Co Galway, is the most expensive address in the west at €326,000.

Average asking prices in Cork city stand at €282,518 while commuter counties near Dublin also hold strong values. Average prices in Meath and Kildare are above the national average at €268,834 and €266,430 respectively.

The most expensive listing so far this year is the plush 18th-century Seafield House, Donabate, in north Co Dublin. The Palladian lakeside mansion is set on 80 acres of gardens and forestry. It boasts a grand entrance hall running the full width of the building, with a galleried walkway and classical mythology scenes depicted in paintings. It has eight bedrooms, nine bathrooms, its own clocktower and a stable yard. It will set you back a cool €10m.

Sunday Independent

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