New figures indicate that the opening of the new Luas Blue line has led to a surge in property prices in some parts of Dublin 1 and Dublin 7, with asking prices up over 20% on sold prices from the first nine months of the year.
The average increase in asking prices in Dublin this year is around 11%.
An analysis of the Property Price Register and of asking prices on its website by MyHome.ie showed that the average asking prices in Stoneybatter is currently €374K, 25% ahead of the average sold price of €300K, achieved in the first three quarters.
Besides Dublin 7 the new line traverses parts of Dublin 1 and 2 where there are relatively few residential properties. The average sold price in the North City Centre for the first three quarters was just over €291K. However, asking prices in the Dominick Street area – where a new Luas stop is located – are now around €356K, an increase of 22%.
In nearby Cabra, which will have two Luas stops, the average asking price is now €337K, over 9% ahead of the average sold price of €307K. Neighbouring Phibsborough has the highest average sold price of €359K in Dublin 7 with the average asking price currently set at €349K.
The Luas Blue line which opens on Saturday will enable people to travel from Cabra to St Stephen’s Green via Phibsboro, Stoneybatter, the North City Centre, Parnell Square, O’Connell Street, Dame Street and Dawson Street. It will also connect up the Red and Green lines.
Angela Keegan, Managing Director of MyHome.ie said the data indicated that the Luas together with the shortage of affordable properties close to the city centre was causing a spike in prices in some areas.
“It’s quite difficult to predict the effect the Luas will have on property prices in a given area. Based on several reports which examined property prices near the Green and Red lines when the Luas began operating, a 10% increase in addition to the regular market movements would not seem unreasonable and that appears to be what’s happening in parts of Dublin 1 and 7. The increase in Stoneybatter are in excess of that again but other factors are probably at play there such as its popularity, café culture and proximity to the existing Red Line and city centre.
“While asking prices in Phibsboro may be pausing for now and the increase in Cabra is on a par with what’s happening elsewhere in Dublin, it’s important to remember this is a snapshot in time. We don’t see prices retreating from their current level and indeed once the Luas starts operating, prices may well accelerate further. Clearly the shortage of properties in the €250 to €350K price range in Dublin generally is another key factor.”
According to MyHome.ie’s figures there have been 432 sales in Dublin 7 in the first nine months of the year. Eighty-one of these sales were in Cabra, 76 in Phibsborough and 45 in Smithfield.
There are just 84 properties for sale in Phibsborough, Stoneybatter and Cabra at the moment and not surprisingly properties are changing hands quickly. In Cabra time to sale agreed is less than two months while elsewhere its between two and a half and three months.
MyHome said all the figures quoted were averages which provide a useful indication of price movements. However, the company pointed out that they had not been adjusted to reflect the mix of property types on sale.