Sticky prices Grand Canal Square? Why?

I have been keeping an eye on asking prices in grand canal square dublin 2 for the past year and cant understand why the asking price of a decent two bed with parking is still 600,000 plus and a not so good 2 bed with parking is still 500,000 plus. Granted it is a decent location for a city centre gaff ( new theatre and hotel underconstruction and plenty of nice restaurants) but these prices are an outrage. Is there something that i dont know about that is giving support to these asking prices at these levels???. What sort of lunatic would pay anything close to 600 for a two bed in this climate, moreover what bank would finance such a venture. How long more can they remain this sticky.

myhome.ie/residential/search … LFJO368304

myhome.ie/residential/search … LGHK360544

myhome.ie/residential/search … NAMK354311

Out of curiosity are many actually selling at that price though? Or do those properties simply remain on the market holding out for their “true” value?

With actual selling prices being a secret guarded closer than the Mona Lisa, the owners will have to go bust before they realise what a realistic selling level is.

I think thats the point. I’ve been watching 3 & 4 beds in Ranelagh on daft since June. The number has gone up from 13 to 20 and not one has shifted in price or sold. This is the summer period so things will be slow - I’m curious to see what happens in the next year.

My belief is that the numbers will just continue to creep up until somebody has to sell (perhaps an executors sale or somebody simply running out of money) and then everyone will start to get real. My own bet is that the prices of these houses (currently in the 695k → 1.2m range) will at least halve in the next 2 years.

Reasoning for this is that these are houses that are bought by people going up the property ladder (starting families etc) - in the past these people had been in their ‘starter’ home for about three years and had a bit of loan paid off plus a bit of equity through appreciation. This isn’t so now - these people are looking at trying to get 90% loans on the sums above. There just aren’t enough people out there with the money to do this - and most of them already live in these houses having bought them 15-20 years ago.

There seems to be a belief that Ranelagh ‘trophy houses’ will hold their value - I don’t believe so - hence my little study.

That only works if you know what houses are selling for. With no (or even worse, misleading) information on what a house sell for, vendors have no benchmark to work against other than their flighty fancies and we’ve seen where that has led us.

As they said.

That is sticky asking prices.

Perhaps they’ll stagnant for a few months, drop, stagnant for a few months, etc.

There’s a place in Clarinda Park, Dun Laoghaire that was been sitting on the market for ages, started at €2.55m after a refurb. Recently dropped to €1.75m. Why? Cos the one across the road is now on the market for that price!

daft.ie/searchsale.daft?id=399098&search=1

Detailed coverage on the drops

Dime,

The story on Clarinda Park is interesting.

The refurb came to the market first at that ridiculous asking price. After a while the second one came on at €1.95 - an empty nester with 100% equity looking to trade down - and the priced it just below the refurb initially.

Then the refurb dropped to the same price as the nester (€1.95) and the empty nester dropped a little to to €1.895.

So the refurb responded t0 €1.75 and the empty nester matched it within 24 hours.

It is fascinating stuff. I know from viewing that the empty nester is being canny and wants to take their time and get the best price they can (it is retirement funding after all) - so they will be very patient. But clearly they are not willing to see that one buyer (at still overpriced territory) get snapped up by the owner across the road.

If I owned the refurb, I would be worried. The first buyer (and possibly only at current prices) who comes along will be captured by the empty nester.

If I liked these places I would try and reverse auction. Get an offer accepted and then walk across the road. Then back and forth and see how far I could squeeze.

The prices won’t drop cause all sellers in an area have themselves convinced there are no buyers. The thought of reducing their price doesn’t enter the cranial flab they call a brain. “Ahh sure there’s no point in dropping the price there is nobody to buy it anyway”. “The price I’m asking is ok. Look around everybody else is asking that too”

See an area where prices are completely unreasonable? Want to start the price tumble? Advertise a property in the area with a price well below what everybody else is asking. Drop the price two or three times to a price you would pay. Then change the as to SOLD.
Watch them follow…

Also check these peak prices in same park:

Link

From my recollection 21W was enormous. If we can take c1.9m as peak, 1.75m clearly still too high.

EDIT: Lovin’ your work BB!