Cost of buying second-hand Dublin home rises but growth moderates

Average price of a second-hand property in capital rose by 8.8% in year to September

DNG forecasts house price inflation will climb to 12 per cent this year before falling back sharply in 2022.

DNG forecasts house price inflation will climb to 12 per cent this year before falling back sharply in 2022.

 

The cost of buying a second-hand house in Dublin rose by 2.1 per cent in the three months to the end of September, with the average price paid in the capital now standing at €492,531, new figures show.

This marks a slowing down in price growth, compared to the first two quarters of the year, when 3 per cent increases were recorded.

New figures from real estate agent Douglas Newman Good (DNG) show the average price of a second-hand property in Dublin rose by 8.8 per cent in the year to September, as against a 9.4 per cent increase in the year to June.

The average house price in Dublin was €452,644 in September 2019.

The cost of acquiring an apartment also moderated in the third quarter, rising by 2.1 per cent on average compared to an increase of 1.7 per cent in the April to June period.

The data indicates that prices were weak in the city centre with the average price of an apartment rising 0.4 per cent versus 3.1 per cent on the westside, 2.8 per cent on the northside, and 2.4 per cent on the southside. DNG said the impact of the coronavirus pandemic may be the reason for the slump in prices in the city centre.

Affordability challenge

DNG chief executive Keith Lowe said an easing in the rate of price inflation was to be welcomed but added that affordability remains a key issue.

“We believe that the Central Bank macroprudential lending rules need to be reviewed and eased to help buyers to the greatest degree possible,” he said.

DNG did note that while overall supply remains constrained, some evidence of an increase in the supply of homes offered for sale in the Dublin market contributed to the reduction in the rate of price inflation in the three months to the end of September.

Director of research Paul Murgatroyd said the latest results indicate that the rate of growth in residential property prices is stabilising, while the impact of Covid-19 on the market is also showing signs of unwinding following 18 months of volatility.

DNG has predicted that house price inflation in the Republic will climb to 12 per cent this year before falling back sharply in 2022 as supply comes on and affordability constraints kick in.

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