Buyers favour ‘turnkey’ homes throughout D3
Prices for three-bedroom semis are the same as they were a year ago in Clontarf, aside from those in excellent condition. Other property types showed modest increases in value.
Local agent Conor Gallagher puts this down to prospective buyers being happy to sit back and wait if they feel that the price being sought for a property is too high. However the volume of transactions here is up by around 12pc.
Mr Gallagher notes that the sharp increase in refurbishment costs that manifested itself during 2018 may hinder growth.
“At least a dozen times last year, I encountered a situation where someone had purchased a property in need of refurbishment and had their architect go in for planning, only to discover by the time that the planning came through, the cost of the work was being priced at up to 50pc or more than originally estimated.
In several cases, those people just gave the property back to me to sell, saying that they no longer wanted the cost or hassle of a refurbishment project, and would buy something in walk-in condition instead.”
Clontarf is one of the more expensive areas in which to buy in Dublin, and a typical entrylevel, first-time-buyer property is a three-bedroom terraced house. The average value of these is now €600,000.
“Young professional couples don’t want to be further out of the city than Clontarf, and these houses are also popular with downsizers, hence the premium prices,” says Gallagher.
Approximately 40 brand-new homes came to the market in Clontarf during 2018, something that had not happened in a long time. This impacted on the value of second-hand properties in the area and the velocity of sales of €1m homes slowed in general as a result.
The most prevalent type of house in Clontarf is a four-bedroom semi. There are always plenty of these available, according to Mr Gallagher, who predicts that their value will rise by just 2pc in the year ahead, compared to an average of 3pc for other property types, in part due to the fact that many of these were refurbished 10–15 years ago and could now do with upgrading.
Energy efficiency is becoming more of an issue. “Buyers work out the cost of making a home efficient and they factor that in. The days of moving into a draughty old house and putting up with it are — understandably — over.” A problem for period properties in poor condition.
EVEN without the inclusion of upmarket Clontarf, the postcode of Dublin 3 is one of the most diverse in Dublin. Property values are reasonably comparable between, for instance, East Wall and North Strand, and between Fairview and Marino, but Ballybough is different again, with prices significantly lower there than in other parts of the postcode.
Overall prices are up 6pc. In common with most parts of Dublin, 2018 was a year of two halves in Dublin 3, with a lift in property prices in the first half of the year and a levelling-off in the second. Local agent Peter Quigley reports that properties in Marino are performing consistently well, with some “exceptional” results achieved by properties that had been refurbished and extended.
The former local authority houses were built in the 1920s and were one of the first-large scale developments by the Irish Free State, ironically contsructed by German builders.
Strong results of €600,000 and €550,000 respectively were achieved for houses on Croydon Park Avenue and Shelmartin Avenue, both in turnkey condition.
Quigley estimates that similar properties requiring refurbishment would have been priced at between €380,000 and €420,000.
“We are seeing significant premiums being paid for properties in turnkey condition,” says Quigley. “Buyers don’t want to have to worry about modernising a property and are happy to pay more for one already done.
“Where a house is in need of refurbishment, there is not the same level of competition. Firsttime buyers are put off by the cost and hassle of a refurbishment project; they simply do not have the time or experience for such a big undertaking. They want to move in and get on with it.”
For those who do have the appetite, heart and cash to do it, Quigley says that there are some “lovely” refurbishment opportunities in North Strand.
“Having access to a builder who will do the work is much more of a consideration now,” he says. “These houses make commercial sense for the right buyer. There are strong premiums to be achieved.”
Quigley says that the last quarter of 2018 leads him to believe that there will be property growth in the region of 5pc across all property types in Dublin 3 in 2019.
Because of the impact of mortgage exemptions, he is expecting 2019 to be front-loaded as was the case last year.