Living near a Luas stop adds €60,000 to the average value of a property, research finds

HOUSE buyers are paying thousands of euro extra to live near a Luas line in Dublin.

Research from Daft.ie shows that commuters are paying a premium of €60,000 in the capital for a home that is located within a kilometre of a Luas stop.

This means buyers are now paying an average of €446,000 for a property close to the tram service.

There are some 67 Luas stops in the Greater Dublin Area.

Houses next to the Luas Green line command the highest premium of any near the transport service.

Average prices are around €524,000, which is €139,000 more than the average across Dublin.

Daft.ie said that on the southside portion of the Green Line, the contrast is even greater. They average out at a difference of €172,000 between Dublin in general and properties close to the southside Green Luas line.

When it comes to the Red line, which heads to Tallaght, instead of a premium, properties are cheaper than the average in the Greater Dublin Area.

Red line property values average €378,000. This is €7,000 cheaper than the Dublin average of €385,000.

Beechwood, near Ranelagh, topped the list as the most expensive Luas stop to live near, with average asking prices of €778,000.

Buying near other Dublin 6 Luas stops is also extremely expensive.

Ranelagh properties have an asking price of €721,000, with Milltown properties averaging €672,000 and those near the Cowper stop commanding asking prices of €662,000.

The least expensive stop is Cheeverstown, near Templeogue in south Dublin, with average asking prices of €197,000 for two- and three-bedroom properties within a kilometre of the stop.

Martin Clancy from Daft. ie said: “Access to transport infrastructure is, unsurprisingly, driving up premiums for properties with good connectivity. For example, on the Luas green line, 24 of the 35 stops have average property prices of more than half-a-million euro.”

Meanwhile, another property price survey has found that the pace of house price inflation has moderated.

Prices nationally rose by 0.5pc in the July to September quarter, estate agents Sherry FitzGerald said.

This took the growth for the year to date to 3.7pc. It compares to growth of 6.8pc recorded in the opening nine months of 2017.

There was also a moderation in the pace of price inflation in Dublin, with average values increasing by 0.3pc.

Prices in Dublin have grown by 3.6pc in the year to date, notably lower than the 7.3pc growth in the period in 2017.

When Dublin is excluded from the national figure, the quarterly increase was 0.7pc.

In the year to date, house prices for the rest of Ireland increased by 3.8pc, compared to growth of 6.2pc recorded in the same period in 2017.

Galway recorded the highest increase of 5pc during the opening nine months of 2018, while prices in Limerick and Cork increased by 1.6pc and 1.9pc, respectively.

Sherry FitzGerald economist Marian Finnegan said: “The latest data on price performance indicates a notable slowdown in the pace of price growth.”

She said a more limited mortgage market due to tighter lending policy introduced towards the end of 2017 and an improved offering in the new homes market have collectively resulted in the price slowdown.