Small gains in South County as top end gets Brexit blues
DUBLIN SOUTH COUNTY AVERAGE PRICE: €773,000 Dalkey, Killiney, Dún Laoghaire, Ballybrack, Deansgrange, Glenageary, Kilternan
Up: s 3%
One Year Forecast: s 2% Assessing Agent: Beirne & Wise THE MARKET BREXIT fallout is being felt particularly at the top end of the market in South County Dublin, which has always been a favoured location for British buyers and wealthier Irish relocating back from London.
While there was still reasonable demand for homes priced at and above the €1.5m plus level, prices have softened slightly on last year.
Despite this, substantial sales are still taking place in this segment. A semi-detached residence at Alma Road, Monkstown sold for €1.63m while Tanglewood on Military Road in Killiney sold for €2.2m.
“Underlying demand for homes in South County Dublin remains strong,” says local agent Wade Wise, “and our expectation is that house price inflation will continue to moderate in 2019 but with certain pockets of the family homes market (i.e. up to €600,000) experiencing higher rates of growth.”
The supply of homes (both new and second-hand) coming to the market is increasing somewhat on previous years and this, coupled with the Central Bank’s stricter lending rules, kept inflation low overall. “Unsurprisingly homes at the lower end of the market are seeing the strongest price growth with continued demand from first-time buyers undoubtedly contributing to a higher rate of price inflation at the start of the year,” says Mr Wise.
“However, affordability issues in this sector, due to the banks allocating most of their 20pc lending exceptions in the first six months of the year, has meant that inflation over the course of the 12 months was relatively limited.”
He sees the lower-end continuing to perform solidly in the short to medium term with demand continuing to outstrip supply. “The family home market was also very buoyant in the first six months of the year, with homes in mature established areas being particularly sought after.” Slightly more subdued for 2019 with a forecast of a 2pc likely rise.