REA June 2014 Property Survey
Price increases for houses in the commuter counties around Dublin have outstripped those in the capital for the first six months of the year, according to a national survey carried out by Real Estate Alliance.
The price of an average three-bed semi in
Irish towns and cities has risen by 11.12% to €170,074 since the end of
December, the Real Estate Alliance Average House Index has found.
The survey of 50 REA members nationwide
also reported a 20% increase in mortgage-financed sales and a 32% reduction in
selling time for properties since the start of the year.
The REA index concentrates on Ireland's
typical stock home, the three-bed semi, giving a picture of the property market
in towns and cities countrywide.
In Dublin city, the average three-bed semi
is now costing €348,333, an increase of 11.76% on the December figure of
€311,667.
However, in the commuter counties and smaller
cities like Cork and Galway, three-bedroomed semis have increased by 15.54% to
an average price of €182,353 in the first six months of the year.
“The shortage of supply of starter homes in
the commuter belt and large urban areas such as Cork and Galway is every bit as
challenging as the situation in Dublin,” said Real Estate Alliance CEO Philip
Farrell.
“In many cases we are now seeing increases
in value which exceed that of Dublin.
“There is further evidence of a three-tier
market in existence, with urban areas in the rest of the country seeing half of
the growth of the commuter belt with values at an average of €106,345, up 6.57%
in the first six months.”
Three-bed semis have seen a rise of 19.69%
across the country over the past year, while prices in Dublin city rose by
21.16%.
The average price of a three-bed semi is
now €170,074 nationally including Dublin, an increase of 17,018 (11.12%) on the
end-Dec 13 figure of €153,056.
The average three-bed semi in Dublin now
costs €348,333 – a jump of €36,666 since the start of the year.
Three beds in Tallaght and the Dublin 24
area have jumped by 25% from €160,000 in December to €200,000 at present.
"Tallaght, in particular, is
reflecting a huge shortage of property on the market, particularly family
homes,” said Philip Farrell.
“Rents are also increasing making it
cheaper in many cases to buy than rent.
“Prices are also being influenced by the
fact that there was very little property moving in the area a year ago.”
The average property is now taking just
nine weeks to sell nationwide, on average nearly 32% quicker than six months
ago, while in Dublin, the time taken to sell has halved from eight weeks at the
turn of the year to just four now.
While there has been a sharp annual rise in
the amount of distressed properties being sold on the market (up 32.45%
nationally), most of that growth was in the back end of last year, and the rate
of increase this year has slowed to just 7.56%, showing a return of the private
seller in greater numbers.
There is hard evidence that the banks are
financing house buyers to a greater extent with the amount of cash transactions
dropping from an average of 66% in Dec 13 to 53% in June 2014.
“In Dublin, mortgage transactions now make
up 49% of all sales, and we are seeing hard evidence that the banks are lending
in increasing numbers,” said Philip Farrell.
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