Tuesday 21 November 2017

Lack of supply and abundance of cash for D4

Shrewsbury Road in Dublin 4
Shrewsbury Road in Dublin 4
Mark Keenan

Mark Keenan

DUBLIN 4

Ballsbridge, Ringsend, Irishtown, Sandymount, Pembroke, Donnybrook, Merrion

Up 14%

One Year Forecast: Up 12%

Average Price: €650,000

Assessing Agent: Sherry FitzGerald.

The Market:

The postal address which contains Ireland's most expensive homes has seen demand surge driven by lack of supply and an apparent abundance of cash. Initially prices fell by up to 70% but they have been steadily clawing their way back since 2012 and now stand at about 50pc below the boom peak.

It could also be argued that the recovery in Dublin property started where the crash began, in the leafy lanes of Ballsbridge, and in particular on Shrewsbury Road and Ailesbury Road where the earliest signs of the crash became apparent in Easter 2006 when a number of trophy homes wavered at auction.

Simon Ensor of Sherry FitzGerald who sells most of the homes at the very top of the market in Dublin 4 reports bidding from cash buyers on virtually every property shown through the last 12 months.

It would appear that many canny people sold at the peak and have been content to sit on their hands since. These same people now appear to have judged the bottom just as cannily. Foreign-based Irish businessmen and women have also been buying up trophy homes in D4's leafy lanes, having held off on acquiring an exclusive Irish base until the crash had done its worst.

Around 50% of potential buyers in this area want a family-sized home and bank finance has been provided to this effect. However the terms are often daunting. It is one thing being offered a loan, quite another choosing to accept it on terms which are still onerous.

Such is the lack of supply in the area that there would be demand for apartments if a good block was to miraculously appear. Ensor says there is an insatiable appetite for family homes but the city's emphasis on high density development means almost none will be built.

While the feeding frenzy experienced in D4 is likely to dissipate somewhat in 2014 as the cash buyers expend their budgets, lack of supply means demand will likely hike prices by 1% per month throughout the coming year.

The Prices:

1-bed apartment:

Jan 2013: €200,000

Jan 2014: €225,000

Jan 2015: €250,000

2-bed apartment:

Jan 2013: €300,000

Jan 2014: €350,000

Jan 2015: €385,000

2-up/2 down:

Jan 2013: €325,000

Jan 2014: €375,000

Jan 2015: €400,000

3-bed terrace:

Jan 2013: €350,000

Jan 2014: €390,000

Jan 2015: €430,000

2-bed cottage:

Jan 2013: €320,000

Jan 2014: €350,000

Jan 2015: €380,000

2-bed townhouse:

Jan 2013: €325,000

Jan 2014: €350,000

Jan 2015: €385,000

3-bed townhouse:

Jan 2013: €350,000

Jan 2014: €400,000

Jan 2015: €450,000

2-bed mews:

Jan 2013: €500,000

Jan 2014: €575,000

Jan 2015: €630,000

3-bed mews:

Jan 2013: €600,000

Jan 2014: €690,000

Jan 2015: €770,000

3-bed duplex:

Jan 2013: €400,000

Jan 2014: €450,000

Jan 2015: €500,000

3-bed semi:

Jan 2013: €510,000

Jan 2014: €565,000

Jan 2015: €610,000

4-bed semi:

Jan 2013: €620,000

Jan 2014: €700,000

Jan 2015: €770,000

3-bed bungalow:

Jan 2013: €500,000

Jan 2014: €550,000

Jan 2015: €600,000

4-bed bungalow:

Jan 2013: €550,000

Jan 2014: €600,000

Jan 2015: €650,000

5-bed semi:

Jan 2013: €800,000

Jan 2014: €925,000

Jan 2015: €1.05m

5-bed detached:

Jan 2013: €850,000

Jan 2014: €1m

Jan 2015: €1.15m

Period 2/3 storey over basement:

Jan 2013: €900,000

Jan 2014: €1.1m

Jan 2015: €1.25m

Period 4/5 storey over basement:

Jan 2013: €1.25m

Jan 2014: €1.5m

Jan 2015: €1.7m

Detached on own grounds:

Jan 2013: €2m

Jan 2014: €2.5m

Jan 2015: €3m

Irish Independent

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