Brendan Burgess
Founder
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I have seen this point argued a few times. Here is an example from the IPAV submission
"Impact of Macroprudential Rules
The rules one-size-fits-all approach does not recognise market realities, therefore they have a more severe impact in Dublin particularly on potential house buyers, renters and economic growth
Supporting Evidence
Dublin prop prices – ahead of rest:
DNG: Residential Market Review Q2 2016:
- Average Dublin Second Hand Price €383,406
- Average Dublin Apartment Price €263,978
DAFT: The Daft.ie House, Price Report, Q2, 2016:
- Average asking prices across Ireland: sample: Longford €68k, Galway €93k, Tipperary €99k, Carlow €104k, Meath €156k, Kildare €168k
- Dublin’s own market: Average asking prices: D4 €597k, D3 €404k, D7 €326k, D22 €214k
IPAV Recommendations
Increase the property threshold from €220,000 to €350,000 in Dublin"
First Time Buyers are not average buyers. They should not be expecting to pay €383k for a house in Dublin.
A starter home should be probably around 60% of the average price? That would be €230k for a house. Apartments are often regarded as starter homes. If the average is €263k, then there must be many below the €220k threshold.
Brendan
"Impact of Macroprudential Rules
The rules one-size-fits-all approach does not recognise market realities, therefore they have a more severe impact in Dublin particularly on potential house buyers, renters and economic growth
Supporting Evidence
Dublin prop prices – ahead of rest:
DNG: Residential Market Review Q2 2016:
- Average Dublin Second Hand Price €383,406
- Average Dublin Apartment Price €263,978
DAFT: The Daft.ie House, Price Report, Q2, 2016:
- Average asking prices across Ireland: sample: Longford €68k, Galway €93k, Tipperary €99k, Carlow €104k, Meath €156k, Kildare €168k
- Dublin’s own market: Average asking prices: D4 €597k, D3 €404k, D7 €326k, D22 €214k
IPAV Recommendations
Increase the property threshold from €220,000 to €350,000 in Dublin"
First Time Buyers are not average buyers. They should not be expecting to pay €383k for a house in Dublin.
A starter home should be probably around 60% of the average price? That would be €230k for a house. Apartments are often regarded as starter homes. If the average is €263k, then there must be many below the €220k threshold.
Brendan