According to the most recent review by advisory firm DNG, Dublin saw an annual house price inflation of 8.4% due to a boost in home prices in the third quarter. The firm has also lifted its expectation for price escalation in Dublin’s resale market to 9%, a rise from their initial prediction of low-single-digit growth for 2024.
The property firm indicated that the capital’s house prices continued to surge at an “elevated” pace in the third quarter. Their house price gauge showed that average prices for resale homes in Dublin escalated by 2.5% in the past three months, mirroring the rate of growth in the second quarter.
This persistent surge indicates that Dublin’s resale homes’ prices have risen by 8.4% over the previous year, a jump from the 6.4% growth reported in the year ending June 2024.
During the same period in 2023, prices only increased marginally by 0.4%, DNG noted. The firm also highlighted that since the market slump in 2012, average home prices in the capital have grown by 135%, despite being lower than peak prices in 2006. The average cost of resale properties in the capital is now estimated at €570,169.
In the apartment segment, a similar trend was observed with DNG’s apartment price gauge noting a 2.3% growth in value for the third quarter. This indicated a faster rate of growth compared to the rates documented in the first two quarters of 2024. The average price of a Dublin apartment has seen a 6.2% rise in the past year, reversing a 0.1% decrease in the preceding 12 months.
The third quarter saw 52% of re-sale properties in the capital being purchased by first-time buyers, according to a DNG analysis. The data also indicated that 19% of these buyers aimed to upgrade in the property market, whilst a meagre 8% intended to downscale.
With the scarcity of re-sale properties continually increasing since the beginning of the year, it is no wonder that the prices of residential properties also rise, commented Paul Murgatroyd, DNG’s director of research. The existing housing stock is insufficient to meet the market demand, causing difficulties for potential buyers, particularly those purchasing for the first time who have pre-approved loans. The market’s competitiveness is currently so stiff that these buyers struggle to find homes they can purchase.
The lack of second-hand properties for sale in the market and the steady demand are driving up property prices in Dublin, confirmed Keith Lowe, DNG’s chief executive officer. According to their study, throughout the third quarter, agreed sales prices averaged 8% higher than asked for, making it no surprise that the DNG HPG noted another potent quarter of price growth between July and September.
Lowe further added that signs of a slight increase in the availability of second-hand properties have appeared recently, with data from DNG suggesting a 12% rise since July 1. However, the estimated supply of 3,900 units available for sale doesn’t meet the historical standards required to fulfil today’s market demand.