Dublin home prices rise 47%

THE average price of a Dublin second-hand home rose by €128,000 in three years to €400,000 - a 47% increase.

Auctioneers Douglas Newman Good’s House Price Gauge for the first quarter of the year indicates that second hand homes in Dublin and surrounding area increased in value by 5% in the first three months of the year. This compares to a rise of 4.1% in the same period last year and a more modest rise of 2% in the final three months of last year. House prices in the Dublin area increased 14% in last 12 months.

DBG economist Paul Murgatroyd believes stamp duty changes pushed up prices at lower end of the second hand residential market. “In the first three months of 2004, prices increased by 2.2% for property worth less than €350,000 whereas this year the rise was double that at 4.5%.”

Mr Murgatroyd said that further up the value chain, demand has continued to outstrip supply.

“People continue to trade up due to the prevailing low interest rate environment, and the more limited supply of good sized family homes in suburban locations has meant that prices have risen faster in the last 12 months than in any other residential sector. Indeed in the past 12 months the average price of homes worth €700,000 or more has increased by approximately 23%,” he said.

He believes it is perfectly feasible that prices will increase by low double digit amounts for 2005.