Location, location... price inflation – demand for prime property in capital pushes up apartment prices by 15%
Last November, a two-bedroom apartment in Custom House Square was sold for €200,000. This month, the similar apartment next door was "sale agreed" at €268,000, according to the estate agent who sold both properties.
The significant price hike is an indicator of some Dublin-based recovery in the apartment market, which has been largely stagnant for more than five years.
According to Rowena Quinn of Hunters Estate Agents, and a council member of the Society of Chartered Surveyors Ireland, a confluence of factors have led to price rises for apartments, especially in sought-after areas of Dublin.
"We are seeing an average 10-15 per cent rise in the apartment market and some like the example in Custom House Square far higher than that. There is a shortage of stock for those looking to either rent or buy. In Dublin 2 and Dublin 4 , the so-called "Googleland", there is an influx of young professionals who believe they are going to be staying for at least five years and they are deciding to buy. As well as that a lot of families living outside of Dublin are looking at the market and saying now is the right time to buy so that their offspring have somewhere to live when they go to college in Dublin," Ms Quinn said.
She added that pension funds were also investing in good apartments in popular areas and there is a growing cohort of seniors who want to downsize to apartments to escape the property tax and have the easier lifestyle offered by apartment living.
"A year or two ago prices were around the €300 a square foot. Now you are looking at more than €400 a square foot in some areas.
"When you have two or three interested parties for one apartment then prices will inevitably reflect that," she said.