The Luas has given nearby property prices a major boost, it was claimed today.
Leading auctioneers Douglas Newman Good said homes close to both Luas Lines saw an additional 15 per cent rise above the general increase in prices in the past two years.
Second-hand house prices in the capital rose by around 13 per cent last year, making the average price of a previously owned home €383,000. House prices are forecast to increase by 9 per cent this year, DNG's Annual Residential Property Review and Outlook revealed.
The study's analysis of the influence of the Luas on property prices showed homes within walking distance of a tram station increased in value by a minimum of 15 per cent more than homes without easy access to the new rail system between 2002 and the end of last year.
Mr Paul Murgatroyd, a DNG economist, said: "The southside has done particularly well in recent years with the extension of the M50 progressing, Luas coming into operation and the more recent Dart upgrade works and we feel that similar developments to the north of the Liffey are long overdue, particularly a rail link from the city centre to Dublin Airport.
"It is clear from the analysis undertaken that improvements in transportation systems have a positive effect on property values." Mr Murgatroyd said the strongest sector of the housing market last year was the mid to upper end of the market where prices increased by 22 per cent compared to the average of 13 per cent.
Mr Keith Lowe, Managing Partner with DNG, said the outlook for 2005 was positive.
"We fully expect prices to increase again this year in the region of 9 per cent or 10 per cent, with the starter homes market having been given a boost by the changes to stamp duty for first-time buyers which was a significant and clever move for which the Government should be applauded," he said.
"Already in January we have seen a significant escalation in prices at the lower end of the market in certain areas - properties that were making €280,000 to €285,000 in December are now fetching €300,000 and upwards.
"In addition, part of the increase at the entry level to the second-hand market is also due to a lack of supply, which is unusual for this time of year. "We would fully expect this boost to prices to be somewhat temporary in nature and expect a levelling off in the rate of price increases as the year progresses," he added.