Dublin property prices up 0.9% in Q2, according to Lisney

Dublin property prices up 0.9% in Q2, according to Lisney

Lisney’s index of Dublin residential property values increased by 0.9pc in Q2 2012, representing the first quarterly increase since the end of September 2006.

The estate agency said the rise was made up exclusively of increases in houses values, with apartments continuing to fall.

On an annual basis, the overall index is now down by 9.7pc and is 63.8pc less than at the peak of the market.

Lisney said the indices of 1-bed and 2-bed apartments continued to decline in Q2, falling 1.2pc and 0.9pc respectively.  Since Q3 2006, the indices have fallen by 65.5pc and 67.8pc.

While apartments have been a difficult segment of the market in recent times, particularly 1-bed units, the agency said conditions have improved in recent months.  It said enquiries and purchases have increased and it envisages price stabilisation in Dublin in the next quarter.

The company’s indices of mid-sized family homes (3 and 4-bed houses) also increased in the quarter, by 1.6pc and 0.7pc.  On an annual basis, the indices are down by 8.9pc and 6.9pc and are 60.7pc and 58.7pc less since the peak of the market in Q3 2006.

It said there has been a noticeable increase in activity at the upper-end of the market of 5+ beds.  This is predominantly focused on established areas such as Dubln 3, Dublin 4, Dublin 6 and Dublin 9.  While not all houses in this category experienced an increase in Q2, the overall indices of 5 and 6+ bed units in Dublin did rise, growing 1.4pc and 3.1pc respectively.  However, on an annual basis, the indices are down by 12.1pc and 3.9pc.

“Our research shows that the value of certain housing types in the majority of Dublin locations increased in the quarter,” said Aoife Brennan, head of research at Lisney.

“On the ground, we are experiencing an improvement in purchaser sentiment and there is competition for properties.  Family homes that have good amenities, such as proximity to schools and shops, are firmly the focus of demand.  The supply of such properties declined significantly over the first half of 2012.

“For Dublin as a whole, and excluding apartments, the number of houses on the market and available to purchase fell by about 19pc, but this ranged up to 35pc in certain areas. These are quite significant decreases and the problem we now face is where the new supply comes from.  Many potential vendors are stuck in negative equity or have tracker mortgages are not in a position to trade up or down at present.  This situation may lead to further price increases in the short-term.”

Lisney’s Residential Value Indices for Dublin comprise 145 properties, which are valued each quarter by chartered surveyors.

There is 1 comment for this article
  1. Claire at 3:36 pm

    Good news indeed, for all working in this sector! I hope its a sign of good things to come!

    Claire http://www.openarchitects.ie

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