City property prices ease as landlords rush to sell up

Property price rises have eased in Dublin, with a sell-off by landlords cited as one of the key reasons.

econd-hand property prices rose by 6.4pc in the year to September. However, this is down from 9.9pc in the year to December, according to estate agency DNG.

The agency said the trend of a stabilisation in the rate of price inflation in the market was evident in the July to September period, with the average price of a resale property in Dublin increasing by 0.4pc.

This was the lowest level of quarterly increase recorded by the DNG house price guide in almost two years.

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

He said landlords selling up was one of the key reasons for greater supply in the market, which was helping to moderate price rises.

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

“In addition, landlords also have serious concerns as to the future direction of policy in relation to the rental sector should there be a change in 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 apartment price gauge (APG) which tracks the city’s apartment prices, recorded an increase in the average price of an apartment in the year to September of 4.4pc as the rate of price inflation continues to ease.

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

DNG said it recorded growth of 0.5pc in apartment prices in the three months to September.

North Dublin saw an above average rate of price growth during the third quarter, with house prices increasing by 1.2pc and apartment prices increasing by 1.1pc over the period.

The same was true on an annualised basis, with house prices up 8.4pc and apartment prices up by 6.1pc in the year to September.

Relatively more affordable property prices north of the city centre, and the proposed MetroLink rail project were cited as reasons behind the greater than average price growth over the last 12 months.

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

“Increased stock available on the market this autumn, Covid-related pent up demand unwinding and rising interest rates are all serving to reduce the rate at which residential property prices are increasing across the capital.”

However, he also noted that the residential transaction levels conducted by the agency were very strong in recent months, running 13pc ahead of the same period last year.

DNG chief executive Keith Lowe said prices are projected to be up 6pc this year compared with last year.

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