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Q3Quarter 3, 2016 The Market in Numbers
THELISNEYRESIDENTIALREPORT
We know property.
Lisney’s index of Dublin prices saw moderate movement in Q3, increasing by 1.0% and is 3.3% higher than in September 2015.
Excluding top-up’s and re-mortgages, there were 5,767 new mortgages drawn-down in Q2 2016. This is 6% more than the same period last year and 24% more than the previous quarter.
Of sales through Lisney in the year to date, 34% of vendors were selling investment. Almost 50% of purchasers were trading up. 17% of purchasers were investors.
7,600 residential units were sold in Dublin in H1 2016. This represents 5.6 units for every 1,000 of the population and 1.4% of the total building stock.
With almost 4,200 properties for sale in Dublin at the end of September, supply remains 20% below the September figure last year.
Only 2,254 new units were built in Dublin in the first seven months of 2016, a third of the optimum level – about 8,000 per year should be built.
Prices
MortgagesMarket Profile
Units Sold
(Lisney Index)
(IPBF / PWC)(Lisney)
(PSRA)
Supply
Cash Purchasers
New Construction
(MyHome)
(PSRA / IPBF / PWC)
(Department of the Environment, Community & Local Government)
Nationwide, cash purchasers made up 46% of the market in H1 2016.
1.0%
5,76734%
7,600
4,160
2,254
46%
Our Offices
lisney.com
In View
Cash purchasers remain a big player, making up about half of the market.
03
Apartments in the city centre are highly sought after currently and are being ‘snapped up’ if priced correctly. This is largely due to proximity to employment and a strong rental market.
05
Demand remains resilient for houses and apartments but the market remains price sensitive. • The market is reasonably active for properties up
to a value of €500,000, which typically includes first-time-buyers.
• There is strong demand for family homes in established suburbs between 500k and 800k.
• Beyond €800,000 the market can be more sluggish. Some reasons for this include selling their existing home; getting through the mortgage/legal process quickly; avoiding going into rental accommodation.
• Luxury homes are in demand, but purchasers are price sensitive and to an extent, location specific.
01
The 3/4 bed market is still strong with up-sizers and down-sizers competing. With regards to the down-sizing market, a lack of suitable accommodation has led to properties of a smaller nature that are well located often achieving figures which are much stronger than anticipated.
04
Purchasers are steering towards turnkey properties and shying away from carrying out refurbishments unless there is perceived value. It is also taking longer for properties with compromises to sell. For example, if the garden is too small for the size of the house or if there is boundary or rights of way issues.
02
Of Lisney sales in the year to date, 34% of vendors were selling investment property. This was followed by executor sales accounting for 22%. On the buying side, almost 50% of purchasers were trading up. Interestingly, investors accounted for 17% of purchasers.
07
Prices saw moderate movement in Q3, edging upwards by 1.0%. Furthermore, prices in the Dublin market were 3.3% higher than Q3 2015.
06
TOPSEVEN OUR VIEW ON QUARTER #3
In Focus
Demand remains particularly strong for well-located three and four bedroom semi-detached family homes in established suburbs; both north and south of Dublin. It is
our experience, time and time again, that properties placed on the market with a sensible asking price tend to generate the most interest from the outset.
This was the case with 45 Dun Emer Drive, Dundrum, Dublin 14 which was brought to the market at the beginning of July with an asking price of €550,000. This four
bedroom semi-detached family home had been looked after exceptionally well by the previous owner and was situated in a nice cul-de-sac setting off Sandyford Road; easily accessible to the Luas and Dundrum Town Centre. Multiple parties bid on the property and the property sold for €615,000 in September.
Conversely, from our experience, if a property is brought to the market with a strong asking price, buyers tend to stand back, almost assuming that the price will ultimately
fall.
Demand remains particularly strong in established suburbs
The sale of 2 Marino Park in Blackrock in August once again illustrated the acute shortage of suitable or ‘right size’ properties available in the market for those
wishing to trade down.
2 Marino Park is a two bedroom bungalow of approximately 125 sqm (1,350 sqft). It is situated in a secure residential development known as The Elms, located off
Mount Merion Avenue in Blackrock. The property was brought to the market with an asking price of €795,000 and was eventually sold in August for €1,015,000. There was an extensive, competitive bidding campaign where each bidder was trading down from a larger house. Potential purchasers were drawn from across Dublin and as far as Kildare and Wicklow, attracted by the opportunity to purchase a ‘right sized’ bungalow in a secure residential development close to amenities.
This sale underlines the need for the provision of suitable properties for those wishing to trade down; either in terms of bungalows or larger apartments. An
increase in this type of property would ultimately then ‘free up’ some of the larger family homes where vendors are so often reluctant to sell until they have identified a suitable property to move to.
Acute shortage of suitable or ‘right size’ properties
45 Dun Emer Drive, Dundrum
2 Marino Park, Blackrock, Co. Dublin
Denville, Barnhill Road, Dalkey, Co. Dublin
There is currently strong demand at the upper end of the market
for properties that are in turn-key condition where the work has been done by the previous owner. All a new owner needs to do is move in with their possessions. Conversely houses that require full refurbishment are sometimes slower to sell as buyers find it difficult to raise the additional finance. One of the features of the residential market over the last number of years is the general lack of properties which have been finished to a high standard being offered to the market. Very few people speculatively engaged in the refurbishment of properties over the last number of years with a view to selling them for a profit. Equally many families who purchased a property 10/15 years ago and carried out extensive refurbishments may still be in negative equity.
The sale of Denville on Barnhill Road, Dalkey, Co. Dublin
demonstrated this. Denville is an outstanding five bedroom semi-detached family home of approximately 242 sqm (2,605 sqft) within a short stroll of Dalkey Village; with the added benefit of a landscaped south facing rear garden of approximately 28 m (90 ft.). The property was sold in July of this year for €1,400,000.
The strong closing figure illustrates the demand in the market place for
properties that have been completely refurbished.
Demand in the market place for properties that have been completely refurbished
Denville, Barnhill Road, Dalkey
HEAD OFFICESt. Stephen’s Green House,Earlsfort Terrace, Dublin 2T: +353 1 638 2700E: [email protected]
LEESON STREET103 Upper Leeson Street,Dublin 4T: +353 1 638 2700E: [email protected]
DUN LAOGHAIRE106 Lower George’s Street, Dun Laoghaire, Co. DublinT: +353 1 280 6820E: [email protected]
DRUMCONDRA141 Lower Drumcondra Road, Dublin 9T: +353 1 884 0700E: [email protected]
DUNDRUM11 Main Street,Dundrum, Dublin 14T: +353 1 513 2727E: [email protected]
HOWTH ROAD171 Howth Road, Dublin 3, T: +353 1 853 6016 E: [email protected]
TERENURETerenure Cross, Dublin 6T: +353 1 492 4670E: [email protected]
CORK1 South Mall,CorkT: +353 21 427 5079E: [email protected]
Directors Leeson Street
Louise KennyDivisional Director
Tracey GilbourneNegotiator
Colm RuaneNegotiator
Melanie RiddallAdministrator
Terenure
Our Offices
lisney.com
The Lisney Dublin Team
@LisneyIreland
Lisney Ireland
Lisney
Eoin O’TooleBranch Manager
Charlotte CowleyNegotiator
Siobhan O’ConnellNegotiator
Drumcondra
Jordan RingNegotiator
Noife BlackwellAdministrator
Michelle KealyDivisional Director
Caroline KevanyNegotiator
Sarah McCarthyNegotiator Support
Claire MeadeAdministrator
Rory KirwanDivisional Director
Colm QuaidNegotiator
Dun Laoghaire
Andy MullinsCustomer Care
Karla BramleyCustomer Care
John O’SullivanDirector
David ByrneDirector
David BewleyDirector
Robyn EspeyNegotiator
Leeson Street
Robert LawsonDivisional Director
Irene KavanaghNegotiator
Jenny KentNegotiator Support
Stephen DayDivisional Director
Ciaran CassidyDivisional Director
Barry O’DriscollNegotiator
Jennifer MacAbhairdNegotiator
Peter KeaveneyNegotiator
Lorita O’DonoghueNegotiator
Dundrum Howth Road
Darren ChambersDivisional Director
Adam ClarkeDivisional Director
