A secondhand home in Dublin costs on average €45,000 more compared to at the end of 2020. The latest housing market review by property advisors DNG shows the average resale price in the capital now stands at almost €499,516, compared to €454,669 at the end of 2020.
National prices excluding Dublin rose 13.6 per cent last year, averaging €246,018, with the strongest price growth in the Mid-west region at 17 per cent, followed by the Midlands at 14 per cent and the West at 13.8 per cent.
All regions recorded double-digit growth in 2021, except for Dublin which rose by 9.9 per cent.
The DNG report also states the Dublin apartment market saw a return to solid growth in prices in 2021 with the average price of an apartment in the city up 7.4 per cent in 2021, compared to a fall in values of 1.3 per cent in 2020 and a drop of 0.4 per cent in 2019.
The agency forecasts further growth in prices both in Dublin and nationally for 2022, with regional price gains set to outstrip those in the capital where nominal values are already elevated, and affordability is more challenged.
Further growth predicted
DNG predicts regional house prices will grow 12-13 per cent this year while price growth in Dublin will be 6-8 per cent.
It attributes this forecasted growth to “continued strong economic and wage growth, the heightened household savings levels seen in 2020-21, the extension of government initiatives for first time buyers announced in the budget, strong demand from this cohort evident in the mortgage approvals data and the prevailing low interest rate environment.
“On the supply side, whilst the supply of new residential completions is set to increase to around 26,000 units this year, this will still be well below the estimated 30-35,000 new units required each year to meet demand thereby putting upward pressure on prices in the market.”
According to DNG’s Director of Research Paul Murgatroyd: “The stock of homes for sale in the second hand market remains very low by historical standards and this, combined with the elevated level of demand, brought about in part by factors linked to changing behaviours throughout the pandemic, will mean further price appreciation will be evident as we progress through the year ahead.”