Property prices in the city are falling as landlords rush to sell

Property price increases have eased in Dublin, with a landlord sell-off cited as one of the main reasons.

Used home prices rose 6.4 percent in the year to September. However, according to real estate agency DNG, this is down from 9.9 percent in the year to December.

The agency said the trend of stabilizing price inflation in the market was apparent over the July-September period, with the average price of a resale property in Dublin rising by 0.4 per cent.

That was the lowest quarterly increase recorded by the DNG home price leader in almost two years.

DNG research director Paul Murgatroyd said a similar trend is also evident in the capital’s housing market.

He said landlord sales are one of the main reasons for the greater supply in the market, which is helping to moderate price hikes.

DNG chief executive Keith Lowe claimed small landlords are selling because of the “punitive tax regime” that, when PRSI and USC are factored in along with management fees, property taxes and other associated costs, makes many rentals economically unviable.

“In addition, landlords also have serious concerns about the future direction of policy in relation to the rental sector, should there be a change of government at the next election.”

Mr Lowe was referring to the possibility of Sinn Féin ending up as one of the biggest parties in the next Dáil.

The DNG Home Price Gauge (APG), which tracks the city’s home prices, saw the average price of a home rise 4.4 percent in the year to September as price inflation continues to ease.

In the year to December 2021, the average price of an apartment in the capital had increased by 7.4 percent.

DNG said it had seen house price growth of 0.5 percent in the three months to September.

North Dublin posted above-average price growth in the third quarter, with house prices rising 1.2 per cent and apartment prices up 1.1 per cent over the period.

The same was true on a yearly basis, with house prices up 8.4 percent through September and home prices up 6.1 percent.

Relatively cheaper real estate prices north of the city center and the planned MetroLink rail project were given as reasons for the above-average price growth in the last 12 months.

Mr Murgatroyd said the modest price increase in the third quarter was welcome news for buyers.

“The increased inventory available in the market this fall, the easing of pent-up demand caused by Covid and rising interest rates are all helping to moderate the rate at which house prices are rising across the capital.”

However, he also noted that housing transactions handled by the agency have been very strong in recent months, up 13 percent from the same period last year.

DNG chief executive Keith Lowe said prices are expected to rise 6 percent this year compared to last year.

https://www.independent.ie/news/city-property-prices-ease-as-landlords-rush-to-sell-up-42013652.html Property prices in the city are falling as landlords rush to sell

Fry Electronics Team

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