Southside property prices fall as mortgage rules bite

THE price of an average three bedroom semi-detached house in South Dublin has dropped by 2.7 per cent to

?¬360,000 in the second quarter of 2015, according to a national survey carried out by Real Estate Alliance.

The REA Average House Price Index concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide.

“There is a massive shortage of properties coming to the rental market and rents are continuing to rise,

? said Anthony McGee from REA McGee in Rathcoole and Tallaght.

“Unfortunately, is it difficult to get a mortgage due to the high rents being paid and young families are finding it difficult to save enough for a deposit to purchase.

?

Rory Crerar, of REA Orchard in Rathfarnham, believes the bank mortgage cap has been detrimental to the Dublin market.

“There are no young couples viewing properties in Dublin, which is slowing the market down for sales and valuations and hugely affecting the middle market,

? he stated.

Likewise, Barry McDonald from REA McDonald in Lucan said the urgency had come out of the market with lower viewing numbers than previous months. He also noted there was a lack of supply in the area, particularly for family homes in good areas.

The average property now takes seven weeks to sell in South Dublin, down from six weeks in March 2015.

The average semi-detached house nationally now costs

?¬186,968, according to the Q2 REA Average House Price Index – a slight fall on the Q1 figure of

?¬187,153.

However, the price of an average three-bed semi in Dublin city has fallen by over

?¬19,000 in the past three months.

The price of an average three-bed semi in Dublin city has fallen by 5.02% from

?¬381,667 to

?¬362,500 since the end of March as the new rules on mortgage lending begin to take effect on the market.

The new rules on mortgage lending for houses above

?¬220,000 have contributed to an already apparent softening in the Dublin market, according to REA.

Some areas in the higher end of the South Dublin city market have seen selling prices fall by up to

?¬35,000 (or seven per cent) since Q1, where the average three-bed semi would sell in the

?¬400,000 range.

However, the market remains relatively stable in areas where prices are closer to the

?¬220,000 threshold.