This year may go down as a vintage year in the property market, according to an end-of-year survey by the Irish Auctioneers and Valuers Institute (IAVI). Dublin house prices rose by around 25 per cent and values increased, throughout the country, by 17 per cent, according to the survey of 500 auctioneers. The figures are broadly in line with statistics from the Department of the Environment last month. And the good times are not over yet for auctioneers. The up-beat report predicts that prices will continue to rise, "as long as the economy is in over-drive".
IAVI members claim that property values rose in virtually every sector of the market this year. The most spectacular increases were in housing land, particularly in Dublin apartment sites which jumped by 28 per cent in the last 12 months.
The £2.9 million paid for four acres in Lucan set a new record for apartment land. Meanwhile, apartment sites throughout the country have increased in value by around 23 per cent. These increases will be passed onto the buyers when the apartment schemes come on stream in the next couple of years.
Dublin apartments have proved one of the best investments in recent years, the report says. This year alone, new and second hand flats rose by up to 26 per cent. Those who bought new apartments for about £50,000 just three or four years ago have seen a handsome return on their investment. According to the report, these are now worth over £80,000. A new price record for an apartment was set this year with the sale of a second-hand penthouse in Merrion Village, Dublin 4 for £730,000.
New houses shot up in value too. Dublin has seen a rise of close to 20 per cent in the last 12 months. The average price of a new house in the capital is now £96,000, up from £76,439 in 1996. The report predicts that the average price will rise to £100,000 in the near future. The increases are not confined to Dublin. New house prices rose nationally this year by around around 14 per cent, according to the report.
Pub prices rose "spectacularly", by 21 per cent across the country and by 27 per cent in Dublin. The sector also saw a record with the £3 million sale earlier this year of Bad Bob's pub in Temple Bar. Dublin's prime retail sites saw rental increases of around 9 per cent, while town centres such as the Square in Tallaght, rose by 7per cent, the report says. Industrial rents rose strongly by about 12 per cent nationally, while capital values rose by eight to 10 per cent.
Land prices continued to rise but at a slower rate than in previous years. Supply was low too and it seems that with the growth in prices slowing down, farmers have simply decided to hold onto what they have.
There was a sharp reduction in the amount of land offered for sale in 1997.
