The average price of resale homes in Dublin has seen a significant increase of 2.5% over the past three months, mirroring growth from the previous quarter. According to new data released by estate agents DNG, residential property prices in the capital have risen by 8.4% year-on-year as of September, surpassing the 6.4% increase recorded for the year ending in June.
In contrast, the same period last year witnessed only a marginal price rise of 0.4%, highlighting a stark change in the real estate market. DNG’s Director of Research, Paul Murgatroyd, noted that the ongoing rise in residential prices is largely attributed to a critical shortage of housing supply in the resale market that has persisted since the beginning of the year.
“There is simply not enough existing housing stock available for sale to satisfy the level of demand in the market,” Murgatroyd said. “This shortage means that buyers, especially first-time buyers who have loan approval, are struggling to find suitable homes amid fierce competition.”
The House Price Gauge reports that since hitting a market low point in 2012, average home prices in Dublin have skyrocketed by 135%. However, prices still fall short of the historical peak reached in 2006. Currently, the average resale property price in the capital stands at €570,169.
DNG’s CEO, Keith Lowe, emphasized that the combination of limited supply and strong demand—particularly from first-time buyers—is a driving force behind the continued increase in prices. “Our research indicates that in the third quarter of the year, properties were being agreed upon at an average of 8% above the asking price, which explains the robust price growth observed in the three months leading up to September,” Lowe explained.
Despite the challenges, there are early signs of increasing supply in the market. DNG’s research shows a 12% rise in available second-hand housing stock since July 1st, though this remains inadequate given current demand levels, with only about 3,900 units available for sale.
In the apartment market, prices in Dublin rose by 2.3% from July to September, compared to increases of 1.6% and 1.3% in the previous two quarters. Over the year leading to September, apartment prices have climbed by 6.2%, a notable improvement from a slight decline of -0.1% in the same timeframe last year.
As the Dublin property market continues to evolve, the ongoing imbalance between supply and demand remains a critical concern for potential homebuyers and industry stakeholders alike.
