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Ireland’s most expensive property market is in Dublin 6.
The property website Daft.ie has published its second part of the 2019 Wealth Report, analysing the expensive Ireland property market, including the most affluent streets.
Areas around Dublin remain the most expensive as regards to housing prices in Ireland, with Mount Merrion, Dalkey and Sandycove being the three most expensive property markets.
The report, in addition, found that the value of all residential properties in Ireland, in the third quarter of 2019, is estimated to be €519 billion.
“It is an increase of 60% from the low-point reached in late 2013, when Ireland’s housing was worth just under €325 billion,” assistant professor in Economics Ronanz Lyons, from Trinity College Dublin said.
In 2019, housing wealth rose by only €5.3 billion, mostly thanks to newly built homes. Mr Lyons also opined that building up new homes while increasing housing wealth is the best solution for Ireland where demand for housing is strong.
Low property taxes
Housing wealth could even be higher. But Ireland’s annual property taxation, which could contribute to achieve this aim, is one of the lowest in high-income countries. Ireland’s ‘Local Property Tax’ (LPT) generated €482 million in revenue in 2018.
“This is less than 0.1% of all housing wealth,” Mr Lyons said. “In theory, the rate of property tax in Ireland is 0.18%.”
He went on to say if the LPT was at the rate of 1%, the revenue could be as high as €5.2 billion.
“In other words, by choosing such a low rate of property tax, the Irish state – and more specifically its local authorities – are foregoing over 90% of potential revenues,” Mr Lyons said.
Most expensive markets
The report also analysed Ireland’s most expensive streets and property markets: Dublin 6 and South County Dublin have been dominating the report since 2009.
While the average asking price in the first half of 2019 was at €635,950 in Dublin 6, the price dropped in the second half to €628.076. Even more rapid decrease can be observed in the case of South County Dublin, where the price has come below €600,000 compared with the H1/2019 price of nearly €609,000.
The top 20 most expensive property markets can be found in Dublin and nearby areas. Conversely, the cheapest homes people can purchase are, for example, in Donegal, where the average price stands at €141.285.
Looking at the last decade, housing prices have risen the most in Dublin 10, Westmeath, Dublin 1, Dublin 15, Dublin 17, and Limerick City, the report reads.
Most expensive streets
Not only is Dublin 6 the most expensive property market, some of the most expensive streets are located here.
In the second quarter of 2019, Dublin 6’s Temple Road has been named the most expensive street. Adjacent streets such as Temple Gardens, Orwell Road, Palmerston Road and Leinster Road also appeared on the list of streets where properties are of the highest value.
Dublin 4 is another neighbourhood with several most expensive streets, including Ailesbury Road, Clyde Road, and Park Avenue.
Palmerston Road, Ailesbury Road, and Park Avenue were one of the most expensive streets also earlier this year. However, it was Coliemore in Dalkey designated as the most expensive street in the first half of this year, with four homes sold for at least €2 million around that time.
In 2019, there were 11 streets on which at least one property was sold for more than €2 million.