30% fall in number of Dublin houses for sale
11 June 2012
Experts say that while buyers are plentiful, there are now fewer houses for sale in Dublin than at any other time in the last 5 years.
Leading property consultants Savills Ireland say that Dublin’s residential property market is experiencing a sharp fall in stock coming to the market but that the reduction is stock varies quite dramatically depending on what area you look at.
According to Ronan O’Hara, Director, Savills Ireland, “from August 2011 to April 2012 there has been an average drop in properties coming to the market of 30% across Dublin. However, some areas have had much more significant drops in supply such as Donnybrook, Ballsbridge and Killester which have seen stock levels drop by up to 60%. On the other hand, Blackrock has only seen a reduction of 19% while locations such as Howth, Sandycove and Dalkey have seen either a limited drop or none at all.
Ronan comments “ Some of our findings were interesting in terms of stock volumes and buyer profile. Although we have noticed stock levels declining slightly ourselves, it is interesting to see that there are now fewer houses for sale in Dublin that at any other time since mid-2007”.
Further analysis into the type of buyer now active in the market indicates that profiles are changing considerably. Where once activity in the market was dominated by First Time Buyers, this has now been superseded by families looking to both trade up and down. Savills says that while FTB’s are far more likely to rely on mortgage funding, a substantial proportion of those trading up are doing so from cash reserves. They are also seeing an increasing number of people, who sold their house in 2007-2009 now looking to buy back in.
Savills also say that the price bands for buyers in the Blackrock area and surrounds have adjusted significantly over the last few years due to a number of factors – primarily access to funds, lower property prices and a more cautious buyer;
% of Buyer Property Prices €000
5.70% €1million +
A breakdown of Savills results gives a clear indication of the price categories where buyers are most active in the current market and reaffirms the overall relatively conservative nature of buyers, compared to previous years:
• Just over 42% buying in the €300k to €400k price bracket
• A further 33% were in the 200k-€300k sector.
• The balance, approximately 25%, are active in the €400k to €1m bracket with the bulk of these being those seeking to trade-up
Ronan went on to say “When we contrast 2012 data with the same period last year and even 2010, we find that First Time Buyers led the activity in those years, followed closely by returning Ex-pats and other overseas buyers. The trader-uppers didn’t really feature. We now see a return of families seeking to trade up or down which ultimately it is starting to have a positive effect on activity”.
Breakdown of the market Q1 2012
Trading up 40.2%
X Pats/Foreign 11.3%
Trading Down 8.8%
*NB: Sales data from Savills Dublin Offices