A new report from the DNG Group has found that property price inflation in Dublin accelerated in the first quarter of 2024, as second-hand homes sold for an average of 6% above the asking price.
Over the past 12 months, the report found, prices across all locations in Dublin have increased by an average of 4.3 % – more than twice the 2% increase in the same period last year.
“Competitive bidding for available properties due to a lack of stock has resulted in prices being pushed upwards, particularly for properties in walk-in condition with good energy efficiency ratings,” said Keith Lowe, CEO of DNG Group.
“Our research shows that, during the first three months this year, sales of homes across the capital were, on average, agreed at 6 per cent above the quoted asking price, indicating the strength of demand in the market at the present time.”
The property adviser said that buoyant demand coupled with low levels of available housing stock continue to push up the price of second-hand homes, particularly for buyers at the entry level.
The report found variations in the rates of price growth in Dublin in the period: west Dublin recorded price increases of an average of 3.7 %, while the price growth in the north side of the city was lower at 1.4%, and a 1.6% rate was seen by the property group in the southside.
Paul Murgatroyd, director of research at DNG, said that stock levels were very low and that first time buyers remained the dominant players.
“Strong demand, particularly at the entry level to the Dublin market, combined with the very low stock of available second-hand homes for sale, resulted in an uplift in prices during the first quarter of the year, as buyers competed for the limited supply of homes for sale,” he said.
“First-time buyers remain the most dominant players in the resale homes market at present, accounting for over half of purchases in the second-hand market during the first quarter of the year in the capital.”
