Q 2 Quarter 2 2018 The Market in Numbers RESIDENTIAL The CSO’s Residential Property Price Index for Dublin increased by 0.8% in the three months to April and by 12.5% annually. Excluding top-ups and re- mortgages, there were 15,087 new mortgages drawn-down nationwide in H1 2018. This is 19.6% more than H1 2017. Approximately 3,950 residential units were sold in Dublin in Q1 2018. This is 5.6% higher than in Q1 2017. There were 5,000 properties for sale in Dublin at the end of June; 30% higher than June 2017. Based on new CSO data, 5,763 units were completed in Dublin in the 12 months to the end of March 2018. 3,953 (69%) were houses and 1,810 (31%) were apartments. Prices Mortgages Units Sold (CSO Index) (BPFI) (CSO) Supply New Construction (MyHome.ie) (CSO) 0.8% 19.6% 3,950 5,000 5,763 39% of purchasers in the first six months of 2018 in Dublin were trading up, 29% were first-time-buyers and 16% were investors. Market Profile (Lisney) 39% The Difference
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Q2Quarter 2 2018 The Market in Numbers
RESIDENTIALThe CSO’s Residential Property Price Index for Dublin increased by 0.8% in the three months to April and by 12.5% annually.
Excluding top-ups and re-mortgages, there were 15,087 new mortgages drawn-down nationwide in H1 2018. This is 19.6% more than H1 2017.
Approximately 3,950 residential units were sold in Dublin in Q1 2018. This is 5.6% higher than in Q1 2017.
There were 5,000 properties for sale in Dublin at the end of June; 30% higher than June 2017.
Based on new CSO data, 5,763 units were completed in Dublin in the 12 months to the end of March 2018. 3,953 (69%) were houses and 1,810 (31%) were apartments.
Prices
Mortgages
Units Sold
(CSO Index)
(BPFI)
(CSO)
Supply
New Construction
(MyHome.ie)
(CSO)
0.8%
19.6%
3,950
5,000
5,763
Our Offices
lisney.com
39% of purchasers in the first six months of 2018 in Dublin were trading up, 29% were first-time-buyers and 16% were investors.
Market Profile
(Lisney)
39%
The Difference
In View
Potential vendors do not want to sell before they buy and cannot buy before they sell. As a result, new homes can be more appealing as the longer purchase process offers
more time to sell a previous property. 05
Affordability is having a strong impact on prices achieved, particularly in the middle to upper end of the market. Lending criteria remains the same, but prices have risen
notably over the past three years; therefore, what potential purchasers can pay is stretched. 02
The cost of refurbishment works has increased and together with a lack of availability of tradesmen, this is affecting the demand and prices achieved of houses requiring work (even just simple modernisation). 04
The market is going through somewhat of a transition with prices generally static but falling in some cases. Part of this is due to an increasing level in supply. There were 5,000 properties for sale in Dublin at the end of June, which is the highest availability since mid-2015.01
In many cases, there is a mismatch between vendor’s expectations and what buyers are willing to pay. There remains an assumption that all levels of the market are experiencing exceptional growth, but this is now mainly confined to properties below €500,000. As such, where asking prices are reasonable, sales are concluded quickly.03
Overall the market is very price sensitive with homes priced at over €700,000 slower to sell. There is also an relatively large supply of homes guiding more than €1.5m, which provides greater options to purchasers in this price range
and hence also affects prices.
The RTB index shows that average Dublin rents increased by 6.6% on an annual basis to Q1 2018. For all property types, the average rent in Co Dublin at the end of Q1 2018
was €1,436. The postal district that achieved the highest average rent during the quarter was Dublin 2.
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Centrally located apartments remain in strong demand, particularly from buyers trading down from larger homes. They are drawn to properties that require less maintenance and are on a single level. Apartments continue to sell well in the city to investors due to such a strong rental market.
Reviewing Lisney sales in Dublin in H1 2018, cash purchasers made up 35% of all purchases. 39% of purchasers were trading up, while 29% were first-time-buyers and 16% were investors. 30% of our vendors were selling investment properties, while executor sales remained high at 28%.
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TOPN I N E OUR VIEW ON QUARTER #2
In Focus
With many vendors time poor, they are prepared to pay extra for houses that are in walk in condition. We are finding prospective purchasers are taking into account the costs of
building work when considering properties requiring refurbishment. Purchasers are also taking into consideration how long this work will take and the extra cost of renting during this time together with the lack of properties available to rent. This was highlighted with the sale of 24 Terenure Road West. The property was refurbished to a high standard in the last three years. We brought it to the market quoting €995,000 and it achieved a much higher €1.1m with multiple bidders engaging.
Lisney brought this 3-bed semi-detached residence with garage to the market in February 2018. It was introduced at a guide price of €495,000 and was on the market for over a
month until it sold at €505,000. We had recently sold a property a couple of doors down from the subject property – 160 Meadow Grove; a 4 bed semi with extensive refurbishment sold at €812,000. There was over €300,000 in the difference in the two houses on the same road.
128 Meadow Grove needed work and as a result did not take off as well. It had fewer viewers and fewer bidders. It concluded at €505,000 to a bidder who had experience with
refurbishments.
128 Meadow Grove, Dundrum, Dublin 14
24 Terenure Road West, Terenure, Dublin 6W
According to the Residential Tenancies Board (RTB) the
number of new tenancies continued to grow across Ireland in 2017. There were 124,732 new tenancies in the year, rising from 106,075 new tenancies in 2016. In total, there was 339,447 registered tenancies at the end of 2017.
The number of landlords registered decreased in the year
by 0.7%. 70% of landlords have one tenancy, while a further 16% have two tenancies.
Notably, there has been an increase, albeit moderate, in
landlords having between 10 and 20 properties, which indicates that more large-scale, professional landlords are now entering the sector.
Trends in the Private Rental Sector
HEAD OFFICESt. Stephen’s Green House,Earlsfort Terrace, Dublin 2D02 PH42T: +353 1 638 2700E: [email protected]
