The rate of increase in three-bed semi-detached home prices in Dublin slowed to 1.5% in the fourth quarter of the year as buyers look to new homes on the horizon, the Q4 REA Average House Price Index has found.
While prices in the capital’s postcode areas have risen by 12.5% in 2017 and stand at €438,000, the Q4 increase of €6,500 is over 60% down on the Q3 rate of 4.1%.
And local agents are predicting that property values will rise by 8% in the city in the coming year.
With more new homes developments coming to market, REA agents in the capital see buyers opting to pay a premium for modern build standards and the certainty of a selling price.
"With housing commencements expected to reach 15,000 this year for the first time since 2008, we are seeing real progress in the delivery of new home developments,” said Paul Grimes of REA Grimes who operate in Dublin City Centre, Skerries and Ashbourne and have a good overview of the north Dublin and East Meath markets.
“We are entering a less heated phase in the second-hand market because many buyers are now opting to put deposits on new homes that may not be completed until mid-2018.
“This, in turn, will play a part in freeing up the stock of second hand housing on the market."
New homes are proving very popular as they are A-rated and there are no difficult bidding wars which can be very stressful for buyers in an under-stocked market said agent Barry McDonald of REA McDonald in Lucan, who has predicted an 8% rise in 2018.
“New developments are typically not bought by investors, which means there is a greater concentration of owner occupiers in new estates, which means better kept homes and more stability,” he said.
A large number of investors who have entered the market in the south city recently according to Ed Dempsey of REA Ed Dempsey in Clonskeagh, who forecasts a 10% increase this year.
“Overall, the market appreciation will slow down slightly due to an increase in supply,” he said.
REA McGee in Tallaght predict an 8% increase in 2018, with an abundance of First Time Buyers coming to the market in Dublin 24.
“We are experiencing a higher volume of mortgage financed non-Irish residents opting for apartment living,” said Anthony McGee.
The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the close of last week.
The average semi-detached house nationally now costs €225,806, the Q4 REA Average House Price Survey has found – a rise of 1.8% on the Q3 figure of €221,861.
Overall, the average house price across the country rose by 11.3% over the past 12 months – compared to 7.7% nationally in 2016.
The survey also found that agents throughout the country expect prices to rise by 7.5% on average in the next 12 months.
Ends
Available for interview:
Ed Dempsey, REA Ed Dempsey, 086 172 4449
Barry McDonald, REA McDonald, Lucan, 086 387 3800
Kevin Riney, REA Orchard, Rathfarnham, 087 298 8143
Paul Grimes, REA Grimes, Merrion Sq, 087 2258678
Anthony McGee, REA McGee, Tallaght, 087 2799332
Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie
