Latest apartment figures see price rises slow
The DNG Apartment Price Gauge (APG) was released for the first time last week giving a full analysis of the movement of apartment prices in Dublin.
The average price of an apartment in the capital now stands at just over €255,000, a 4.4pc increase in the year to the end of September 2015. The most active part of the market can be seen in Dublin city centre, where the average price of an apartment now stands at €290,000, an increase of 1.8pc in the third quarter of 2015.
According to the DNG APG, West Dublin saw the second highest growth in the third quarter with the average price of an apartment standing at €201,000, a 0.7pc increase.
There was no real difference in the rates of growth seen in the apartment market, as defined by the number of bedrooms, during the third quarter. All sectors increasing approximately 0.4pc on average. In the 12 months to the end of September, the average annual rate of increase was also similar across all sectors, with two-bedroom apartments rising 4.6pc in value compared to 4.3pc for three-bedroom properties and marginally slower growth of 3.8pc in the one-bedroom market.
Overall, the third quarter of the year saw the rate of price inflation remain low in the Dublin apartment market, continuing the trend of softer price growth seen in the second quarter. This follows the strong growth in prices seen in the first quarter and mirrors the trend currently evident in the wider residential property market, as price inflation softens in the capital as the year progresses.
So what do those figures mean for buyers? The slowdown in growth of Dublin apartment prices is welcome and good news for buyers following sharp price rises in 2014. Prices of most apartments in the capital especially those located in the Dublin suburbs and the majority of areas outside the capital are still well below their replacement value (the cost of building a new apartment today).
Apartment prices have also been slower to recover than house prices and with this in mind we believe that apartment prices will continue to recover over the next few years but at sustainable levels.
Apartment living is still very popular in Dublin, First time buyers are drawn towards them as their first home and we have noted a rise in sellers trading down to good size apartments from larger houses.
Mark Stafford is a director at DNG estate agents