Property valuations in areas of North Dublin that are being served by Luas have increased significantly in the last 10 months prior to the opening of the new light rail lines last week in November 2017, according to new data.
The latest report implies that in Stoneybatter, a stylish area in Dublin 7, which is partly serviced by the Luas already, the average asking prices have increased by 25% compared to their original prices in the first nine months of 2017.
Inside the Dominick Street area in which a Luas stop is situated – asking prices are after rising by 22% meanwhile in the suburb of Cabra, which will reap the benefits of two new Luas stops, the asking prices increased by almost 10%. Although it is not clear to what extent the new Luas line is influencing buyers purchasing decisions.
Last year in October 2016 independant research data confirmed the average price of a house in Dublin got climbed by almost 12% over 12 months prior to October 2016. However, double-digit rises predicted to continue through next year 2018.
In the second week of November 2017, the new Luas blue collection started assisting travel from Cabra to the green line at St Stephen’s Green via Phibsborough and the north of Dublin City Centre, that includes Parnell Square, O’Connell Street and Dame Street.
It will intersect the red line in two spots between Jervis and Abbey Street, giving a higher connectivity to areas such as Stoneybatter.
Property Auctioneers are convinced about the expected hike in property principles and believe it will only clear once the trams are fully operational, although there have been price hikes in a few areas since works on the expansion commenced back in 2013.
Irish Property website HOUSEish.com found average valuations in Stoneybatter are EUR 374,000, which is 25% higher compared to the average sold price of EUR 300,000, in the first three quarters of this year 2017.
In Cabra, the average asking price is now EUR 337,000 which is almost 10% higher compared to the average sold price of EUR 307,000 in the first three quarters of this year 2017.
In Phibsborough, a suburb on the border of the inner Dublin City, the best average sold price of EUR 359,000 has surpassed, asking price averages currently at EUR 349,000. However, retailers often get more than they ask for and Phibsborough has already seen the highest average sales prices of areas bordering the new Luas lines in the last nine months.
Reason For Surge In Price:
This information reveals a spike in prices precipitated by both Luas and a severe shortage of affordable properties near Dublin City Centre.
Although it’s very difficult to predict the actual impact Luas will have on property prices in given areas. According to the research and information which reviewed property prices near the renewable and red lines, a 10% increase wouldn’t normally seem unreasonable and this appears to be occurring in Cabra this very moment in mid November 2017.
Such price hikes in Stoneybatter are a result of more than just Luas service routes, other factors are also at play there such as its popularity, café culture and its proximity to the City Centre and all blue chip multinational companies.
While asking prices seems to have levelled off in Phibsborough area, they are very unlikely to retreat anytime soon.