Reflecting a 36% increase in Dublin housing completions over the first half of the year, sales of new homes have risen by one-third (33%) according to Savills, who report that 800 transactions took place between January and June. Linda Forsyth of Savills New Homes says that although stock levels are still at a critically low level, 2016 will be the strongest year for new home sales in almost a decade.
Full year housing competitions are likely to be around the 4,000 mark in Dublin come December, although there is a requirement for a minimum of 8,000 completions per annum.
Pricing data analysed by Savills indicates that over 60% of the new homes sold this year have been priced between €250,000 and €500,000, while less than 10% were priced below €250,000.
The median price of a new home in Dublin (below €1m) has risen to €395,000 from €325,000 in 2015 — an increase of 20%, which Linda suggests points to the fact that the entry level market is still not being catered for, as projects are often not yet viable:
“Supply in traditionally lower value areas is very low, while it remains unviable for the most part to build apartments that are not catering to the luxury end of the market.”
Savills is currently gearing up for 11 new homes launches between now and the end of the year with schemes located throughout Dublin, Cork and strong commuter towns in Kildare, with prices ranging from €265,000 to upwards of €1m.
For further information, please contact
E: andrew.smyth@savills.ie
