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Hope Returning to the Dublin Property Market? 2013 – The Year So Far www.castles.ie
| Date post: | 12-Jul-2015 |
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Hope Returning to the
Dublin Property Market?
2013 – The Year So Far
www.castles.ie
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Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Stronger Start To 2013Sales Volume Up 15% on First Half of 2012
Liquidity ReturnsResidential property worth over €1 billion
sold in Dublin in first half of 2013. Somesemblance of a normal functioning market.
Increasing PricesAverage price increased from €282,000 to€309,000 (+9.4%) as prices firm up withconsistent demand and moderate sales levels
Minor Increase in VolumeNo major increase in the number of sales in
2013, showing there is still a chronic
shortage of supply despite price rises.
New Years RushQ4 2012 higher than usual seasonal swing
due to the withdrawal of mortgage relief.Unlikely to be repeated in 2013.
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Prime Property Picking UpMore +€1 Million Homes Sold
Q1-Q2
2012 67
75
And at higher average values: €1.9m versus €1.75m
Q1-Q2
2013
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Walford, Dublin 4Sold March for 2013 for €14 million
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Big Buyers Back In The MarketGeorgian Gems and Modern Mansions
Coolbawn, Ailesbury Road,BallsbridgeSold May 2013 for €2.5 million
51 Orwell Park,
RathgarSold April2013 for €2.4 million
Abbotts Hill,
MalahideSold April 2013 for €2.1 million
55 Merrion Road,
BallsbridgeSold March 2013
for €2.26million
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Investors Buying Apartment Schemes420-Unit Clancy Quay Sold For Record-Breaking €60 million
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Watching The TrendsDemand versus Supply
Supply Demand
Demand Strong and
ImprovingBuyers returning to the market, banks
beginning to lend and stability encouraging investors and weary buyers back into play.
Chronic Lack of Supply Supply however remains constrained.
Households in negative-equity or general
unwillingness to sell at new pricing levels is keeping homes off the market.
Self-Perpetuating CycleMany households thinking of moving but
cannot find anything to buy due to lack of
properties on the market and extreme competition. Seller Stalemate.
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Watching The TrendsBuyers Returning To The Market – Who are they?
Patient RentersSold up before or during the bust
and have bided their time before
re-entering the market. Come with cash in hand and ready to buy.
DownsizersKids have moved out and they are
taking advantage of the upswing in
prices to sell their 4-5 bed house
and buy a more manageable 2-3 bed
UpgradersHave held out as long as possible in
their current home, finally trading up for more space for growing family
First-Time BuyersThey‟re back.Once they‟ve jumped
through all the mortgage company
hoops, FTBs are keen buyers of
now once again affordable Dublin areas
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Watching The TrendsProperty In Demand – What are they buying?
Family HomesBig demand for good-sized family
homes from Upgraders but also
Downsizers hitting the market from both ends.
Family AreasDemand is not just strong for
traditional prime neighbourhoods.
Almost all family-friendly suburbs are in demand from upgraders and FTBs.
ApartmentsApartments are selling, albeit slowly
and at still suppressed prices. But
investors are swooping back in to pick up bargains in strong rental areas.
Central City NeighbourhoodsHouseholds are coming back to their
traditional family roots, returning from
the cheaper suburbs to central Dublin areas that are once again affordable
Watching The TrendsThe New Mortgage Market – Who‟s lending?
AIBAIB have been lending throughout the
last few years but criteria are high.Up to 92% loan-to-value available.
Permanent TSBPTSB are back in the lending market and
busy marketing new loans.Lending up to 90% loan-to-value.
Bank of IrelandTentatively giving new loans but getting
some bad press over charging full
interest on „split-mortgage‟ agreements
meant to help struggling existingcustomers.
KBC BankBack in the market properly having
increased their maximum LTV from 80%to 90% for FTB and non-customers.
Hold on to that tracker!Homeowners have been putting off moving if they
would risk losing their lucrative tracker mortgage.
Meanwhile banks are desperate to get rid of
these unprofitable rates wherever possible.
Only recently are many banks easing up and
allowing homeowners to sell and take their
trackers with them. This has helped get the
market moving in certain areas but it is slow andisolated.
What about existing mortgage customers?
What about Negative-Equity?Many homeowners in negative-equity having
been sitting tight, paying their repayments and
resigning themselves to their existing home.
However, some banks are allowing arrangement
of new negative-equity loans, but they are rare.
Only 175 had been agreed up to June 2013 from
banks including AIB, Bank of Ireland, Danske and
PTSB.
Danske BankDanske are reportedly lending but LTVs
of only 50-80% lock out most FTBs andnon-existing customers.
www.castles.ie
Watching The Trends2013 and beyond – What we see happening next?
Uncertainty RemainsEconomic and financial uncertainty will keepthe country, banks and homeowners wearyabout borrowing and lending.
No New BoomThe market is still working itself out and anyrapid upswings are isolated and short-term.Increased supply will slowly matchdemand, especially if the banks start theirsell-offs.
Return To NormalcyPrices in prime and popular areas arereturning to long-term norms, having almostcertainly over corrected in the bust.
Time to move?Households always need to move, whetherrelocating, upgrading or expanding.
In the last 2 years any move was a risk butthat has now been eliminated as normaltrading resumes.
We believe there the market will continue ata steady pace but no rapid rise or fallshould be seen in the near to medium term.
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About CastlesCastle Estate Agents were founded in 2004 with one very clear goal:
“To become the best in the industry”
As we approach 10 years in business, we believe we are providing the best service to
homeowners in Dublin. Our goal is to provide the best service in every possible way has been
a huge success with our clients and we are gaining happy and loyal customers every single
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expertise is a hit with our customers.
We are the No. 2 Most-Active Agent in Dublin
We are the No. 1 Most-Activein over 40% of our key areasIncluding Dublin 6W, Dublin 12, Dublin 16 and Dun Laoghaire and catching up across
Dublin 8, Dublin 14, Dublin 24 and South County Dublin.
In July 2013 we open our first Northside Office in GlasnevinSo now we cover the whole of North and South Dublin, County Dublin and surrounding
Counties. Bringing our acclaimed service and expertise to the whole city.
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Castle Estate AgentsChanging The Face Of Estate Agency In Dublin
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