herald

Tuesday 27 September 2016

House prices fall after anti-social behaviour at Red Line Luas stops

Daft's Ronan Lyons
Daft's Ronan Lyons

Living close to a Luas or Dart stop in the capital will increase the value of your home by up to 6pc - but only if you live in the leafy suburbs, according to a new report.

The research conducted by Daft.ie investigated the price of two-bedroom, one bathroom properties within 1km of Luas and Dart stops.

It found that living near stops associated with anti-social behaviour will have a negative effect on sales prices in particular.

Daft.ie's Ronan Lyons told the Herald that the Luas Green Line extension to Cherrywood in south Dublin had one of the most significant impacts.

"One stand-out figure was Cherrywood, prices were between 10 and 15pc higher after the Luas than they were before and rents were between 5 and 8pc higher," Mr Lyons said.

However, Mr Lyons pointed to a recent extension to Saggart on the Luas Red Line where prices dropped 5pc.

"It varies so much across the different lines, so the Dart and the Luas Green Line had a big impact on prices but the Luas Red Line didn't - at least not on house prices.

"That highlights the importance of security and safety, that some stations will be of clear benefit but others - if they're put in an area where it may actually encourage anti-social behaviour - may actually mean that being very close won't be a good thing," he said.

"It seems to be that being right on top of the Red Line stations does have a negative impact compared to other properties in the area which just aren't as close," he added.

Buyers are paying close attention to new infrastructure in Dublin. Mr Lyons told the Herald that there has been an upsurge in interest for property in the areas where the Luas cross-city line is being laid.

Interest

"If you look at the cross-city Luas you're probably seeing an increase in interest because they will be close to Luas stops, even though there's nothing there just yet," he said.

"This year and next year, you will see an effect in those areas, in the same way that Cherrywood had a big impact on prices.

"In probably three years time we'll be able to do the same with the cross-city Luas and look at the before and after prices," he added.

Across the board there has been a much more significant impact on house prices than on rental prices, averaging at around 6pc compared to 2pc.

Mr Lyons said this is down to sell-on opportunities for buyers.

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