Tuesday 22 January 2019

Revealed: How much living close to Luas and Dart adds to your house price

The new cross-city Luas has been the cause of traffic jams in the city centre
The new cross-city Luas has been the cause of traffic jams in the city centre
Mark Keenan

Mark Keenan

The 'ding ding' of Luas has meant a great big 'ka-ching!' for property owners in Dublin 7, where the six-month-old tram service has inflated the value of their homes well beyond market averages.

According to Daft.ie, prices of homes located on Luas and Dart lines now stand 26pc above other non-connected properties in the capital and today's buyers in the capital are paying an extra €114,000 on average for homes close to a Dart or Luas stop.

House prices close to Dart stations and Luas stops rose by an average of 4pc in the first quarter of 2018 to an average of €492,000, according to new research published today by Daft.ie.

The property website has just published a Q1 2018 Dart and Luas stop-by-stop house price map. Daft analysed the average asking prices for two and three-bed properties close to each of the 125 stops and stations in the Greater Dublin Area for the period between April 2017 and March 2018.

Estate agents have noted a frenzy of buying in Dublin 7 in the past two years, based not only on the Luas but also on the expansion of the new 'super campus' at DIT Grangegorman. These have included families seeking to ditch the car, who are buying and doing up former Corpo homes and terraces, as well as 'flipper' developers busy acquiring run-down pre-1963 buildings which ran foul of the abolition of bedsits. These have been converted to private residences or sub-divided again into larger upmarket apartments before being sold on at a profit.

The most recent additions to the Luas green line are those living in the vicinity of stops such as Cabra, where tram services began just six months ago and homes have shot up to €417,000 according to Daft.ie.

At Grangegorman, prices have hit €419,000 and hikes have also occurred at Broombridge (now at €419,000) and the ever popular Phibsborough (€441,000). The last stop at Broadstone has seen house prices in its vicinity rise to €400,000.

Meanwhile, commuters on the Dublin south coastline pay most for rail proximity - a property close to a Dart averages €625,000.

Lansdowne Road is at €765,000, Sydney Parade at €761,000 and Blackrock prices are at €734,000, accounting for four of the top five most expensive stations on the new maps produced by Daft.ie. On the Luas, homes close to the Beechwood stop on the green line command the highest average asking price (€752,000), while those living close to the Spencer Dock stop (€633,000) pay the most on the Luas red line.

On the Luas green line, 16 of the 27 stops now have average property prices in excess of half-a-million euro.

Trinity College economist Ronan Lyons said: "The price of housing reflects not only the dwelling itself but also a wide range of nearby amenities. An obvious example is access to good transport facilities and, as this report shows, those looking for a new home reward properties with good transport links.

"In Ireland, the property tax is based on the market value of a home - and this is a good way to encourage investment in more transport infrastructure. As these homes are more valuable, this leads to a form of 'value capture', with Government able to set aside some of their Local Property Tax income to pay back money borrowed to build new rail tracks."

But there has been another, more adverse impact by Luas for those not living near it.

In February, Dublin City Council boss Owen Keegan admitted that bus journey times through College Green had increased by up to 143pc at peak times following the start of the Luas cross-city, which has regularly been the cause of snarl-ups since it opened. It means those who live off-line are now seeing red, not green, and if delays continue their house prices will start taking the dings.

Irish Independent

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