Property prices on parts of Luas Cross City route up by 25%

Property valuations in parts of north Dublin that are being served by Luas Cross City have risen significantly in the nine months ahead of the opening of the new light rail line on Saturday, new data shows.

The latest figures compiled by property website MyHome.ie shows that in Stoneybatter, a fashionable area in Dublin 7 already part served by the Luas, average asking prices have risen by 25 per cent compared to sale prices in the first nine months of the year.

In the Dominick Street area - where a Luas stop is located - asking prices rose by 22 per cent, while in the suburb of Cabra, which will benefit from two new Luas stops, asking prices rose by about 9 per cent. However, it is not clear to what extent the new Luas line is influencing purchasing decisions.

Last October separate MyHome data showed the average cost of a home in Dublin had climbed by 11.8 per cent over the previous 12 months with double-digit increases predicted to continue through next year.

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From Saturday, the new Luas blue line will facilitate travel from Cabra to the green line at St Stephen’s Green via Phibsborough and the north city centre, including Parnell Square, O’Connell Street and Dame Street.

It will intersect the red line in two places between Jervis and Abbey Street, giving greater overall connectivity to residential areas such as Stoneybatter.

Auctioneers believe the anticipated hike in property values will only be fully realised once the trams are up and running, although there have already been gains in some areas since works on the extension began in 2013.

MyHome’s analysis of both the property price register and asking prices on its own website found average valuations in Stoneybatter are currently €374,000, 25 per cent ahead of the average sold price of €300,000, realised in the first three quarters of the year.

In Cabra, the average asking price is now €337,000, over 9 per cent ahead of the average sold price of €307,000.

In Phibsborough, a suburb on the edge of the inner city, the highest average sold price of €359,000 has surpassed asking price averages currently at €349,000. However, sellers often get more than they ask for and Phibsborough has already seen the highest average sale prices of areas surrounding the new Luas line in the last nine months.

Angela Keegan, managing director of MyHome.ie, said the data indicates a spike in prices precipitated by both the Luas and a shortage of affordable properties close to the city centre.

“It’s quite difficult to predict the effect the Luas will have on property prices in a given area [BUT]based on several reports which examined property prices near the green and red lines, a 10 per cent increase would not seem unreasonable and that seems to be happening in Cabra,” she said.

“The increases in Stoneybatter are well in excess of that, but other factors are probably at play there such as its popularity, café culture and proximity to the city centre.”

While asking prices appear to have levelled off in Phibsborough, Ms Keegan said they were unlikely to retreat.