Revealed: Luas driving up property prices by 20pc
Luas effect sees house prices take off in parts of Dublin 1 and 7
The 'Luas effect' is driving up house prices in Dublin 1 and 7.
The Luas Blue line, which will travel from St Stephens Green to Cabra, isn't set to launch until Saturday but new figures indicate that it has already led to an increase in property prices along the line.
Properties in Cabra, Stoneybatter and Phibsboro have seen an increase in asking prices in the third quarter.
The current average asking price in Stoneybatter is €374k, which is 25pc ahead of the average sold price of €300k in the first three quarters.
In Cabra, which has two Luas stops, the average asking price for a house is now €337k, 9pc ahead of the average sold price of €307k.
Neighbouring Phibsboro has the highest average sold price of €359k in the Dublin 7 area, where the average asking price is now €349k.
House prices in the Dominick Street area, where a new Luas stop is also located, have seen a 22pc increase with asking prices around €356k.
The findings come from a new report from MyHome.ie
MyHome.ie managing director, Angela Keegan said it's "difficult to predict the effect the Luas will have on property prices in a given area".
"Based on several reports which examined property prices near the Green and Red lines when the Luas began operating, a 10 pc increase in addition to the regular market movements would not seem unreasonable and that appears to be what’s happening in parts of Dublin 1 and 7," she said in a statement."
However, Ms Keegan stressed that other factors, not just the new Luas stop, have led to a surge in house prices in the area including its café culture and proximity to the existing Red Line and city centre.
The growing student population at the new DIT campus in Grangegorman and the proposed redevelopment of Phibsboro Shopping Centre is also likely to be a factor in turning the Dublin 7 area into a property hotspot.
The shortage of properties in the €250 to €350K price range in Dublin "generally is another key factor".
She added that the current asking prices are just a "snapshot in time" and once the Luas starts operating prices may increase further.
According to MyHome.ie's figures there have been 432 sales in Dublin 7 in the first nine months of the year. E81 of these sales were in Cabra, 76 in Phibsboro and 45 in Smithfield.
There are just 84 properties for sale in Phibsboro, Stoneybatter and Cabra at the moment. In Cabra the time to sale agreed is less than two months while elsewhere its between two and a half and three months.
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