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€1bn more is splurged on houses in Dublin - report

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Estate agents say that some people who moved out, actually took the light bulbs with them

Estate agents say that some people who moved out, actually took the light bulbs with them

Estate agents say that some people who moved out, actually took the light bulbs with them

A billion euro more has been spent on property in Dublin in the first half of this year compared to the same period three years ago.

Data gleaned from the property price register shows that home buyers in the capital spent €1.83bn on bricks and mortar in the first six months of 2014, the busiest for sales since the crash landed in 2007.

The figure compares with €844m spent three years previously in the first half of 2011 - when property prices reached the very bottom of the cycle.

Meantime, the value of transactions rose in all but two parts of Dublin in the first six months of 2014 when compared to the same period last year, while there was an increase of 32pc in the volume of sales compared with the first half of 2013 - rising from 3,966 to 5,240.

The postcode area which saw the biggest spend was Dublin 18 at €178m, while the smallest spend was Dublin 10 at €5m.

The research, just published by Myhome.ie, conclusively shows that the capital's property market first started to recover in 2012 and that early reports of a recovery in values - frequently rubbished at the time - were correct.

The data also proves that the smartest buyers were those who purchased at the very lowest price ebbs experienced in 2010 and 2011.

So far this year Dublin 6 has proven the most popular area in which to buy a property, with 346 sales recorded between January and June.

This was an increase of 76pc on the 197 sales in that postcode region for the same period last year.

The areas which generated the most activity included Dublin 15 (303), Dublin 16 (265), Dublin 14 (259), Dublin 6W (258), Dublin 18 (240), Dublin 8 (233), Dublin 3 (225), Dublin 11 (215), Dublin 9 (210) and Dublin 13 (208).

The latter recorded the biggest percentage increase in activity in the first half of the year, rising by 189pc.

Only Dublin 20 (-14pc) and Dublin 17 (-13pc) failed to record an increase in activity compared with the first half of 2013.

Myhome.ie's Angela Keegan said that if this trend continued, the Dublin market would see around 14,000 transactions this year, up almost a third on the 11,095 recorded for all of 2013.

"The volume of sales is increasing and we believe this trend will continue because people who haven't been buying for the last number of years are now back in the market."

Concerned

"We are concerned about the lack of supply and the effect this is having on sales and affordability.

"For example, Castleknock was the most popular area to buy a home in during 2013 with 304 sales, but its figures for the first six months of the year fell by 11pc, underlining the stock problems that are affecting many parts of Dublin," Ms Keegan said.

Meantime, a pre-Budget submission just published by Savills has called on Minister Michael Noonan to postpone the government-backed mortgage guarantee scheme on the basis that providing house-buyers with more money at a time when there are not enough homes would only serve to further fuel price inflation.

Irish Independent