The document summarizes real estate trends in Dublin, Ireland in the first half of 2013. It finds that the Dublin property market is strengthening with residential property sales up 15% and average home prices rising 9.4% compared to the first half of 2012. However, supply remains constrained, limiting further price increases. While demand is improving as buyers return, many homeowners remain unwilling to sell, perpetuating the lack of inventory. The summary also notes that mortgage lending is increasing but uncertainty remains, and a full market recovery is not expected.

1. Hope Returning to the
Dublin Property Market?
2013 – The Year So Far
www.castles.ie

2. €0
€100
€200
€300
€400
€500
€600
€700
€800
€900
€1,000
Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013
Stronger Start To 2013
Sales Volume Up 15% on First Half of 2012
Liquidity Returns
Residential property worth over €1 billion
sold in Dublin in first half of 2013. Some
semblance of a normal functioning market.
Increasing Prices
Average price increased from €282,000 to
€309,000 (+9.4%) as prices firm up with
consistent demand and moderate sales levels
Minor Increase in Volume
No major increase in the number of sales in
2013, showing there is still a chronic
shortage of supply despite price rises.
New Years Rush
Q4 2012 higher than usual seasonal swing
due to the withdrawal of mortgage relief.
Unlikely to be repeated in 2013.
www.castles.ie

3. Prime Property Picking Up
More +€1 Million Homes Sold
Q1-Q2
2012 67
75
And at higher average values: €1.9m versus €1.75m
Q1-Q2
2013
www.castles.ie

4. Walford, Dublin 4
Sold March for 2013 for €14 million
www.castles.ie

5. Big Buyers Back In The Market
Georgian Gems and Modern Mansions
Coolbawn,
Ailesbury Road,
Ballsbridge
Sold May 2013
for €2.5 million
51 Orwell Park,
Rathgar
Sold April2013
for €2.4 million
Abbotts Hill,
Malahide
Sold April 2013
for €2.1 million
55 Merrion Road,
Ballsbridge
Sold March 2013
for €2.26million
www.castles.ie

6. Investors Buying Apartment Schemes
420-Unit Clancy Quay Sold For Record-Breaking €60 million
www.castles.ie

7. Watching The Trends
Demand versus Supply
Supply Demand
Demand Strong and
Improving
Buyers returning to the market, banks
beginning to lend and stability encouraging
investors and weary buyers back into play.
Chronic Lack of Supply
Supply however remains constrained.
Households in negative-equity or general
unwillingness to sell at new pricing levels is
keeping homes off the market.
Self-Perpetuating Cycle
Many households thinking of moving but
cannot find anything to buy due to lack of
properties on the market and extreme
competition. Seller Stalemate.
www.castles.ie

8. Watching The Trends
Buyers Returning To The Market – Who are they?
Patient Renters
Sold up before or during the bust
and have bided their time before
re-entering the market. Come with
cash in hand and ready to buy.
Downsizers
Kids have moved out and they are
taking advantage of the upswing in
prices to sell their 4-5 bed house
and buy a more manageable 2-3
bed
Upgraders
Have held out as long as possible in
their current home, finally trading up
for more space for growing family
First-Time Buyers
They‟re back.Once they‟ve jumped
through all the mortgage company
hoops, FTBs are keen buyers of
now once again affordable Dublin
areas
www.castles.ie

9. Watching The Trends
Property In Demand – What are they buying?
Family Homes
Big demand for good-sized family
homes from Upgraders but also
Downsizers hitting the market from
both ends.
Family Areas
Demand is not just strong for
traditional prime neighbourhoods.
Almost all family-friendly suburbs are
in demand from upgraders and FTBs.
Apartments
Apartments are selling, albeit slowly
and at still suppressed prices. But
investors are swooping back in to pick
up bargains in strong rental areas.
Central City Neighbourhoods
Households are coming back to their
traditional family roots, returning from
the cheaper suburbs to central Dublin
areas that are once again affordable

10. Watching The Trends
The New Mortgage Market – Who‟s lending?
AIB
AIB have been lending throughout the
last few years but criteria are high.
Up to 92% loan-to-value available.
Permanent TSB
PTSB are back in the lending market and
busy marketing new loans.
Lending up to 90% loan-to-value.
Bank of Ireland
Tentatively giving new loans but getting
some bad press over charging full
interest on „split-mortgage‟ agreements
meant to help struggling existing
customers.
KBC Bank
Back in the market properly having
increased their maximum LTV from 80%
to 90% for FTB and non-customers.
Hold on to that tracker!
Homeowners have been putting off moving if they
would risk losing their lucrative tracker mortgage.
Meanwhile banks are desperate to get rid of
these unprofitable rates wherever possible.
Only recently are many banks easing up and
allowing homeowners to sell and take their
trackers with them. This has helped get the
market moving in certain areas but it is slow and
isolated.
What about existing
mortgage customers?
What about Negative-Equity?
Many homeowners in negative-equity having
been sitting tight, paying their repayments and
resigning themselves to their existing home.
However, some banks are allowing arrangement
of new negative-equity loans, but they are rare.
Only 175 had been agreed up to June 2013 from
banks including AIB, Bank of Ireland, Danske and
PTSB.
Danske Bank
Danske are reportedly lending but LTVs
of only 50-80% lock out most FTBs and
non-existing customers.
www.castles.ie

11. Watching The Trends
2013 and beyond – What we see happening next?
Uncertainty Remains
Economic and financial uncertainty will keep
the country, banks and homeowners weary
about borrowing and lending.
No New Boom
The market is still working itself out and any
rapid upswings are isolated and short-term.
Increased supply will slowly match
demand, especially if the banks start their
sell-offs.
Return To Normalcy
Prices in prime and popular areas are
returning to long-term norms, having almost
certainly over corrected in the bust.
Time to move?
Households always need to move, whether
relocating, upgrading or expanding.
In the last 2 years any move was a risk but
that has now been eliminated as normal
trading resumes.
We believe there the market will continue at
a steady pace but no rapid rise or fall
should be seen in the near to medium term.
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
www.castles.ie

12. Castle Estate Agents
Changing The Face Of Estate Agency In Dublin
About Castles
Castle Estate Agents were founded in 2004 with one very clear goal:
“To become the best in the industry”
As we approach 10 years in business, we believe we are providing the best service to
homeowners in Dublin. Our goal is to provide the best service in every possible way has been
a huge success with our clients and we are gaining happy and loyal customers every single
day.
Fastest Growing Agent in Dublin
While other agencies are still closing offices and losing agents, we are opening new offices
and hiring more expert and professional agents. Our brand of customer service and market
expertise is a hit with our customers.
We are the No. 2 Most-Active Agent in Dublin
We are the No. 1 Most-Activein over 40% of our key areas
Including Dublin 6W, Dublin 12, Dublin 16 and Dun Laoghaire and catching up across
Dublin 8, Dublin 14, Dublin 24 and South County Dublin.
In July 2013 we open our first Northside Office in Glasnevin
So now we cover the whole of North and South Dublin, County Dublin and surrounding
Counties. Bringing our acclaimed service and expertise to the whole city.
www.castles.ie

13. Castle Estate Agents
Changing The Face Of Estate Agency In Dublin
www.castles.ie
Contact Your Local Office Today
North & West Dublin Office
12a Terenure Road West, Terenure, Dublin 6w
01 4900 700
info@castles.ie
South County Dublin Office
4 Old Dublin Road, Stillorgan
01 217 2960
stillorgan@castles.ie
Northside Office
6B Hart‟s Corner, Finglas Road, Glasnevin, Dublin 9
Coming Soon
northside@castles.ie