The increase in supply of new homes in Dublin is having an effect on second-hand prices in some areas, the Q2 REA Average House Price Index has found.
The rate of increase in second-hand three-bed semi-detached home prices in in Dublin city was just 0.7% in the last three months, with prices falling slightly in one suburb.
After rising by 12.5% in 2017, the average price of a second-hand semi-detached house in the capital has increased by just €5,000 so far this year and now stands at €443,000.
“Wherever we have new homes on the market, they are definitely having an effect on prices in the existing market as they operate in their own price structure, with buyers prepared to pay a premium for A-rated properties,” said REA spokesperson Barry McDonald.
“As a result, many of our agents in Dublin have reported an increase in time taken to sell the average second-hand property and a slowdown in viewings, especially among first time buyers.
“As agents, our big challenge is to get vendors to accept the reality of the situation on the ground where sellers are not achieving the sort of inflated asking prices that they may expect for properties.
“In my own area, Lucan, we have seen the average three-bed semi price drop slightly by -0.6% (€2,000) in the past three months to €352,000, simply because of the selection of available new homes in the area.
“In the Celtic Tiger years, all prices rose across the board, but in 2018, the system is actually working and the only price inflation is in a new homes market that is concentrated in pockets.”
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 second-hand property market in towns and cities countrywide to the close of last week.
Anthony McGee of REA McGee in Rathcoole and Tallaght reports strong demand in both areas and a shortage of suitable supply on the market.
“In Tallaght we are seeing a good number of first time buyers looking to get on the housing ladder as a result of increasing rents, and prices have increased by 1.9% to €265,000, with houses now taking four weeks to sell,” said Anthony.
“We have seen no change with prices static at €315,000 in our Rathcoole office and properties again taking a week longer to sell at five weeks in this easily commutable suburb.”
Paul Grimes of REA Grimes sees steady demand for properties in the city centre where prices are static at €513,000 in the past quarter, with a strong appetite for small units and a high number of cash buyers still present in the market.
“We have recorded increases of 1.4% in Skerries (€370,000) with property being seen as more affordable than the city,” said Mr Grimes.
John Cumisky of REA Cumisky reports that selling prices for three-bed semis in Balbriggan have risen by 1.9% in Q2 and now stand at €270,000, with average selling times moving from six to eight weeks.
REA Ed Dempsey report an increase of 1.7% to €595,000 in Clonskeagh and a 1% increase in Dun Laoghaire where the average price is now €505,000 and easy transport to the city centre is proving a draw.
REA Orchard in Rathfarnham are reporting a €5,000 increase (1.1%) in the past three months to €480,000, but as is the case throughout the capital, time taken to sell has increased – in this case from four to five weeks.
The average semi-detached house nationally now costs €232,441, the Q2 REA Average House Price Survey has found – a rise of 1.5% on the Q1 2018 figure of €229,111.