The first signs of a nationwide property
recovery in 2014 has been confirmed with one national estate agency group
reporting a 6.2% annual price increase outside Dublin – as a three-tier market
emerges.
A survey of 48 Real Estate Alliance members
nationwide has reported a mini-boom in the residential market around the
country since mid-January, with average viewing numbers up by 84%.
“We are now moving from a two-tier market to a
three-tier one for the first time, with Dublin, a large commuter ring and large
urban areas nationwide, and then the rest of the rural areas all showing
different levels of positive activity,” said Philip Farrell, Real Estate
Alliance CEO.
“Our agents are reporting an increase in supply
of 11.5%, with average prices for closed sales rising by 6.2% on the spring
selling period last year – the bulk of which has happened since mid-January.
“Each property is now attracting 13 viewers on
average, up from seven in 2013, and this has enabled some agents to organise
block viewings – something we haven’t seen since the height of the boom.
“Our survey shows that the average time it takes
for sale agreed has dropped from 17 weeks in 2013 to an average of ten in 2014.
“We are seeing an increase in bank-funded buyers
on the ground which has led the previously strong cash buyers figure to drop
from 70% to 56% of the market.
“In larger urban areas nationwide there is a
release of pent-up demand as people begin to make moves to secure property in
desirable areas.
“We are also seeing a marked increase in market
sentiment, which hit rock bottom last year.
“Viewing numbers are up, AMVs are being
achieved, and exceeded in some cases, with an increase in both first and
second-time buyers.”
“While there is an increase in activity overall,
there are still some counties which are slow to perform price-wise.
“This is generally due to over supply in these
areas and a lack of demand as potential buyers don’t have the same access to
the same amenities that many urban areas provide.”
Real Estate Alliance (REA) is Ireland’s leading
property group of Chartered Surveyors with almost 50 branches nationwide,
comprising many of the country’s longest-established auctioneers and estate
agents.
REA O’Brien Collins in Drogheda has reported
that a property with an asking price of €80,000 had 41 viewers, attracted 10
bids and sold for €100k after 30 days on the market.
REA Celtic Properties in Bantry have reported
sufficient interest to organise block bookings for the first time in five
years.
“Take the case of two identical holiday homes in
Milford, Co Donegal. One attracted two viewings and one offer last spring and
sold for €100,000. This year, a neighbouring property received 10 viewings, and
four offers before selling for €111,500” said Philip Farrell.
“In Meath, REA T&J Gavigan are reporting
that the average price for a
three-bed semi-detached in Kells last spring was
100k. That has now risen to €110,000 with strong demand.
“In Limerick, REA O’Connor Murphy are seeing a
substantial increase in demand in the prime locations such as the North
Circular Road and Ballyclough. This high-end increase is also being reported
around the country, in areas such as Drumconora and Barefield in Ennis and
Dungarvan.
“In Cork, REA O’Donoghue and Clarke are
reporting a 15% price increase, with supply up 20% on last year. Demand is high
for three-bed semis and also small sites around Cork city and we are seeing
five weeks on average to sale agreed.
“In the coastal areas in particular, we are
seeing a large increase in enquiries from the UK – due both to our recent
London Property Exhibition and also our tie-up with rightmove.co.uk.
“However, our survey also sees a lot of members
predicting a shortfall of supply in their areas due to lack of three and
four-bedroomed new developments coming through.”
