Second-hand property prices continue to drop in Dublin – survey

Second-hand property prices continue to drop in Dublin – survey

Second-hand property prices in Dublin have decreased by an average of €4,500 in the past three months, a survey has found.

The Real Estate Alliance survey found the average house price for a three-bed semi-detached house in Dublin stands at €433,000, for the second quarter of 2019.

This is a second consecutive quarter fall (-1%) since the end of March, and 2.2% decrease compared to June 2018.

The average semi-detached house nationally now costs €236,028, a rise of 0.05% on the Q1 2019 figure of €235,898.

Overall, according to the survey, the average house price across the country rose by 1.54% over the past year – a decrease on the 2.96% recorded to March – and an indication that the market is continuing to steady after an 8% overall annual rise to June 2018.

The report said increased availability of new homes has had a suppressing effect on prices in some commuter areas such as Kildare, north Wicklow and Meath.

Prices in the country’s major cities outside Dublin were “relatively static” with no change in Limerick and Galway due to “an increase in supply and new home developments”.

Cork city showed a slight rise of 0.8% to €320,000 while Waterford city had a quarterly increase of 2.4%, with tightening supply rising prices to €215,000, up €5,000 from the end of March.

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Residential property price growth slows to 3.1% in April

Residential property price growth slows to 3.1% in April

New figures show that Dublin residential property prices grew again at a slower pace in April than the rest of the country.

The latest residential property price figures from the Central Statistics Office show that prices nationwide rose by 3.1% in April compared to the same month last year.

This is the lowest rate of price growth since the recovery in prices began in 2013 and compares with an increase of 13.3% the same time last year.

Dublin residential property prices rose by 0.5% in the year to April, with no change in house prices and apartments rising by 2.2%.

The CSO noted that the highest house price growth in the city was in South Dublin at 4%, while Dun Laoghaire-Rathdown saw the greatest decline in house prices with a fall of 1.5%.

Residential property prices in the rest of the country rose by 5.6% higher in the year to April, with house prices up by 5.8% and apartments by 5.9%.

The region outside of Dublin that saw the largest rise in property prices was the Border with growth of 11.4%, while the smallest rise was recorded in the Mid-East at 1.5%.

The CSO has calculated that property prices nationally have increased by 81.9% from their trough in early 2013.

Dublin residential property prices have risen 91.9% from their February 2012 low, while residential property prices in the rest of Ireland are 79.9% higher than at their trough in May 2013.

Today’s CSO figures show that households paid a median price of €250,000 for a home in the 12 months to April 2019.

The Dublin region had the highest median price of €366,000l. Within the Dublin region, Dún Laoghaire-Rathdown had the highest median price at €537,000, while Fingal had the lowest at €331,887.

The CSO noted that the highest median prices outside Dublin were in Wicklow at €315,000 and Kildare (€295,000). Tthe lowest was €100,000 in Longford and Leitrim.

The CSO also said that a total of 44,598 household dwelling purchases were filed with Revenue in the year to April.

Of these, 30.7% were purchases by first-time buyer owner-occupiers, while former owner-occupiers purchased 52.2%. The balance of 17.1% were acquired by buy-to-let purchasers.

Revenue data shows that there were 1,005 first-time buyer purchases in April, an increase of 5.7% on the 951 the same time last year.

These purchases were composed of 310 new homes and 695 existing homes.

Commenting on today’s figures, Goodbody economist Dermot O’Leary said that while the house price data may somewhat lag market developments, it is clear affordability, binding mortgage rules and a higher stock for sale continues to weigh on price growth.

“In contrast, rapid employment growth, rising earnings and a pick-up in mortgage approvals should provide support,” he added.

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Residential property values rise by €84m per day – report

The value of residential property in Ireland rose by more than €84 million every day over the past year, according to new data.

In total, the value of homes here is now €510 billion, an increase of €31bn or 6% on a year earlier, the report said.

“While the bulk of that comes from changes in property values, a growing share of the change in Ireland’s property wealth is coming from new construction,” said the author of the study Ronan Lyons, an economist at Trinity College Dublin.

“On average last year, Ireland’s stock of homes grew in value by €84m per day with €15m of that coming from new construction.”

The figures are contained in a Wealth Report produced by property website,, which analyses 54 different markets around the country, including 25 different parts of Dublin, the four other cities and the 25 other counties over the past six months.

Not surprisingly the most expensive markets are in Dublin, with properties in Dublin 6 costing an average of €635,950 and in south county Dublin, €608,549, the report finds.

Mount Merrion in south Dublin tops the list of the most expensive of 389 micro markets in the country analysed by the report, with an average asking price of at €854,000.

This is followed by Dalkey where a house will cost the buyer €842,000 on average, the data shows.

Enniskerry in Co Wicklow was the most expensive town or region outside of the capital, with average values reaching €638,000 and Wicklow was the most expensive county or city.

Kinvara in Co Galway was the most expensive town or region in Connacht-Ulster where a property cost €326,000 on average, while Kinsale in Co Cork topped the list in Munster, with prices there averaging €395,000.

This compares to €261,000 on average nationwide and €97,000 in Ballaghaderreen, Co Roscommon which had the cheapest average sale prices.

The cheapest five markets in the country remain concentrated in the north-west and in all five, property values are on average below €150,000.

These range from Leitrim, where property is €137,000 on average, to Donegal, where it is €146,000, the report says.

Eleven properties a week worth over €1m were sold over the last year, creating even more property millionaires.

The area with the largest number of homes that have sold for more than €1m is Dalkey, where 936 properties have changed hands for this amount or more, the report claims.

Dublin 10 was the area where house prices have risen the most over the past decade, climbing from 40th on the list in 2009 to 30th this year.

The most expensive street in the 2019 list is Coliemore in Dalkey, where four properties have changed hands for at least €2m in recent months, with an average price point of €5.5m.

Away from Dublin, Scilly Hill in Kinsale is the most expensive street, with an average house sale price of €2.5m.

The most expensive residential property to hit the market so far in 2019 was Seafield House in Donabate, with a price tag of €10m.

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Asking property prices continue to moderate in 2019

Asking property prices continue to moderate in 2019

House prices are still rising, but they are doing so at a slower rate, according to a new report from property website

The report showed that the trend of downward house price inflation – first noticeable in the second half of 2018 – has continued in the first quarter of 2019.

The report, which is published in association with Davy, found that annual asking price inflation is now just 3.3% nationally and 1.1% in Dublin. This is down from 6% and 3% respectively in the fourth quarter of 2018.

Asking prices for newly listed properties nationally increased by 2% in the first quarter of the year, while they rose by 1.4% in Dublin.

This means the median asking price for new sales nationally is just over €270,000, while the price in Dublin is €380,000.

Conall MacCoille, chief economist at Davy, said the slowdown in price inflation, which was concentrated in Dublin, was largely due to the Central Bank’s lending rules and unrealistic price expectations rather than uncertainties caused by Brexit.

“At the beginning of 2018, the median loan-to-income (LTI) ratio among first-time buyers in the capital was already 3.5 times income and therefore close to the regulatory threshold,” he said.

“The tightening of the Central Bank of Ireland mortgage lending rules – and the resulting slowdown in price inflation – was always going to be felt first in the capital,” the economist stated.

“It also appears that price expectations in early 2018 were unrealistic and a period of adjustment has taken place as a result,” he added.

The report’s analysis also showed that the slowdown has been concentrated in the most expensive property types and areas.

It said the median asking price for four-bedroom detached houses in Dublin is flat on the year at €650,000.

But prices for one-bedroom apartments are up 10.5% on the year to €210,000 while the price of two-bedroom apartments are up over 8% across Dublin.

“Despite the current slowdown, we still expect Irish house prices nationally to rise by 4% in 2019”, Mr MacCoille said.

The report also noted that there are few signs yet that Brexit is holding back transactional activity.

Residential transactions grew by 4% in 2018 to 57,000 and the report estimated that volumes in January and February were also up 4% on the same period last year.

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Irish property market ‘leads way in Europe’

Irish property market ‘leads way in Europe’

Growth in Ireland’s property market remains “significantly ahead” of the rest of Europe, according to the European arm of US investment giant Starwood Capital.

The European division said Dublin features low vacancy rates in prime offices, hotels that have the top occupancy rates of all cities in Europe, and a shortage of residential and student accommodation.

Starwood European Real Estate has just over 23pc of its total £431m (€503m) loan portfolio in Ireland. Its total investments and commitments at the end of 2018 were £477.2m (€559m).

It bankrolled the development of the new international school in south Dublin, a project spearheaded by tech entrepreneur Barry O’Callaghan in conjunction with Hong Kong-based Nord Anglia Education.

The school, located at the former Microsoft European headquarters, opened last September. Starwood loaned £17m towards its development.

Releasing its annual report yesterday, Starwood European Real Estate confirmed that it closed a €60m floating rate whole loan to finance the acquisition of stake in the Citywest hotel in Dublin by Tetrarch Capital in February last year. It was one of the largest loans made by Starwood’s European arm last year.

Tetrarch bought out the interest of its joint-venture partner in the hotel, US firm Pimco. The pair had acquired Citywest out of receivership in 2014 for €30m.

Starwood also loaned €9m to finance the conversion of 84 aparthotel units to residential use on a site adjacent to the Citywest hotel. The financing was made via an initial advance along with a capital expenditure facility to fund the refurbishment works for a period of 18 months, with a six-month extension option.

The company also committed to an €11.25m loan facility to finance the development of a 127-bedroom student accommodation scheme in the capital.

“The Dublin student market suffers from a severe structural undersupply of purpose-built student accommodation, and the borrower’s aim is to deliver high-quality schemes in strong locations across Ireland in order to address this shortage,” noted Starwood.

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