Average house prices in Dublin city and county fell by over 6% in 2015 as a combination of lack of suitable supply, high rents and the Central Bank’s deposit rules stagnated the capital’s market, according to a national survey carried out by Real Estate Alliance.
The average house in Dublin city and county now costs €332,000, down €21,500 (-6.08%) on last December’s price, the Q4 REA Average House Price has found.
And while prices in the capital have been hit following large increases in 2014, values in the commuter counties and the larger cities have grown by 4.58% in the 12-month period, with the average house now costing €206,853.
However, the biggest upsurge this year has been in the rest of the country, where towns have seen growth of 9.31%, and average prices have risen from €111,518 to €122,161.
Ireland’s largest cities have had a strong fourth quarter, with Cork (+3.64%), Galway (+4.17%), Limerick (+1.29%) and Waterford (+2.84%) all turning in their best performances since the survey began in 2013.
The average semi detached house nationally now costs €188,370, the Q4 REA Average House Price Survey has found – a slight rise on the Q3 figure of €186,102.
Prices in Dublin city and county fell by -0.75% in Q4, while Dublin city alone fell by -0.69% – the average three-bed semi now costing €357,500.
However, the biggest growth was in the rest of the country outside the commuter belt and larger cities, where house prices increased by 0.95% in the last three months.
The REA Average House Price Survey concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the end of the selling season in December.
The lack of suitable supply is the biggest influence on the property market nationwide, according to REA Chairman Michael O’Connor.
“What we have seen in the last three months are prices only increasing in areas that are offering people the accommodation that they require,” he said.
“People may want to buy housing, but if suitable properties are not available, they will not buy.
“We are seeing a lack of supply of good quality three-bed semi-detached houses across the country, and a desperate need for new developments.
“In many areas, the properties available in the sub-€220,000 level are either apartments, houses that are too small or need too much investment to bring them up to standard.
“The market is still stalled at the second–time buyer level, due to the restrictive nature of the Central Bank’s deposit lending rules.
“Many potential second-time buyers now only have the option of renting bigger houses and letting out their own, as they are not able to afford the 20% deposit to be able to purchase.
“There are very few suitable houses to buy at the lower end of the market for first-time buyers because potential second-time buyers have no way to trade upwards.
“While Dublin was the first region to recover, followed by the commuter areas, we are now seeing an increase in values in our largest cities outside Dublin a year later, and one-by-one our smaller towns have started to see increases.
“For the first time we are seeing developers trying to buy land in the anticipation of building as it is now economical to build in some of our larger cities.”
Prices in Kerry rose by 4.12% to €177,000 in Q4, while Munster neighbours Clare saw their average price go up 2.19% to €140,000 with both increases being fuelled by lack of supply, according to local agents.
Tipperary (+1.38% to €155,000) also saw house prices rise mainly due to a severe lack of suitable supply, while Monaghan (+2.56% to €120,000) experienced its first increase since 2008.
In Carlow (+1.07% to €142,000), local agents report a market influenced by repossessed properties negatively affecting values and while prices are rising, they are still selling at much less than build cost for developers.
The cash buyer is still more prevalent in country areas (47%) than in commuter counties (31%).
In the commuter counties, there was an average 1% increase in Wicklow, due to increased activity in Wicklow town up 3.77% (€265,000 to €275,000) and Bray up 1.54% (€325,000 to €330,000).
Meath and Louth were stagnant in Q4, with time taken to sell increasing from six to eight weeks on average in both counties.
However, three of the four REA agents in Kildare (with the exception of Naas) reported slight falls of -2.05% as lack of supply stifled the market in Q4, reducing average prices to €238,750.
In Dublin, the upper end of the market remained stagnant after suffering mid-year falls, as the seismic effects of the Central Bank rules are felt in the lower end of the market.
House prices in South County Dublin fell by -1.45% in Q4, with the effects being felt in sub-€290,000 housing.
House prices fell by €10,000 to €210,000 in three months in Tallaght (-4.55%) and by €5,000 in Lucan (-1.82% to €270,000).
“Constantly increasing rents have made it almost impossible for first-time buyers to save the deposit required,” said local agent Anthony McGee of REA McGee.
“An average couple who are paying €1,400 a month to rent a two bed apartment in Tallaght, running an car and paying for childcare, cannot afford to save upwards of €20,000 for a deposit.
“And what is so frustrating for them is that what they are paying in rent exceeds the cost of a mortgage in the same property.”
(See case study for Tallaght)
Available for interview:
Michael O’Connor, REA chairman and auctioneer.
087 259 7034 moconnor@reamcdonald.ie
For comment on Dublin market:
Anthony McGee, REA auctioneer
087 279 9332
Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037
Monday 21 December 2015
Reversal of Fortunes for Tallaght Q4 2015
The issues being experienced in Dublin’s typical average first-time buyer area, Tallaght, have typified the flux currently being experienced in the market.
Average three-bed semi prices in Tallaght and its environs have fallen by €10,000 (-4.55%) in the last three months, with three-bed semis now making €210,000.
“There are a number of major factors influencing the market in Tallaght, and throughout similar areas of South Dublin,” said local agent Anthony McGee of REA McGee.
“Constantly increasing rents have made it almost impossible for first-time buyers to save the deposit required.
“An average couple who are paying €1,400 a month to rent a two bed apartment in Tallaght, running an car and paying for childcare, cannot afford to save upwards of €20,000 for a deposit.
“And what is so frustrating for them is that what they are paying in rent exceeds the cost of a mortgage in the same property.
“This is a huge first-time buyer market where people would traditionally rent for three or four years before buying.
“However, we now see people renting for 10 years because they will never be able to save the deposit.
“We have notice a trend recently whereby foreign nationals with good jobs have been leaving rented accommodation to return home purely because they cannot afford the rent and can never see themselves owning a house.
“House prices have fallen because there is a lack of suitable properties coming on stream and there isn’t a huge amount of people viewing or bidding as they are stuck in this rental mess.
“People have a limit and they will walk away rather than go above that number.
“The fact that loan offers are only lasting three months is proving to be very frustrating to buyers in an era of low supply.
“People getting lost in a maze of loan approval, which has to restart after three months.
“The rental market is contracting at a rate of knots as every house that we sell is now being bought by an owner-occupier.
“There are no new investors in the lower of the market. You can achieve double-digit yields if finance is available, but the banks are not lending to them
“A lot of existing landlords, who would see the potential in these yields, are in negative equity and will not get finance.”
Average three-bed semi prices in Tallaght and its environs have fallen by €10,000 (-4.55%) in the last three months, with three-bed semis now making €210,000.
“There are a number of major factors influencing the market in Tallaght, and throughout similar areas of South Dublin,” said local agent Anthony McGee of REA McGee.
“Constantly increasing rents have made it almost impossible for first-time buyers to save the deposit required.
“An average couple who are paying €1,400 a month to rent a two bed apartment in Tallaght, running an car and paying for childcare, cannot afford to save upwards of €20,000 for a deposit.
“And what is so frustrating for them is that what they are paying in rent exceeds the cost of a mortgage in the same property.
“This is a huge first-time buyer market where people would traditionally rent for three or four years before buying.
“However, we now see people renting for 10 years because they will never be able to save the deposit.
“We have notice a trend recently whereby foreign nationals with good jobs have been leaving rented accommodation to return home purely because they cannot afford the rent and can never see themselves owning a house.
“House prices have fallen because there is a lack of suitable properties coming on stream and there isn’t a huge amount of people viewing or bidding as they are stuck in this rental mess.
“People have a limit and they will walk away rather than go above that number.
“The fact that loan offers are only lasting three months is proving to be very frustrating to buyers in an era of low supply.
“People getting lost in a maze of loan approval, which has to restart after three months.
“The rental market is contracting at a rate of knots as every house that we sell is now being bought by an owner-occupier.
“There are no new investors in the lower of the market. You can achieve double-digit yields if finance is available, but the banks are not lending to them
“A lot of existing landlords, who would see the potential in these yields, are in negative equity and will not get finance.”
Thursday 19 November 2015
Nationwide development rebates needed to solve housing supply crisis
The Government needs to impose the proposed local development charge rebate scheme on a nationwide basis in order to ease the current housing supply crisis, a leading estate agency group has advised.
Failure to recognise that supply problems are not just an issue in Dublin or Cork will do little to alleviate the current impasse which has led to a nationwide accommodation shortage, according to Real Estate Alliance.
“Although the Taoiseach has confirmed that the Government will introduce a local development charge rebate scheme for large housing projects in Dublin and Cork, they are failing to recognise the fundamental supply issues that exist in urban areas nationwide,” said REA Chairman Michael O’Connor.
“Our REA Average House Price Survey has consistently shown the extent to which a lack of supply has driven people out of the housing market and into a crowded rental space across the country.
“In concentrating on urban areas around the country, we have seen micro markets opening up, with specific towns in counties behaving completely differently, influenced by the availability of small numbers of starter homes.
“And further evidence of the nationwide shortage is shown in the recently announced 80% fall in available rental properties compared to this time last year.
“The cause of this nationwide lack of suitable housing supply, especially in three-bedroomed semi detached homes, is that builders cannot yet sell at a profit.
“The average price of a three-bed semi in our Q3 survey was €188,102 – and in simple terms, a builder needs to achieve €200,000 from the sale of a new home to cover the cost of construction.
“There is still a huge gap in the cost of building and bringing a house to the point of sale, and what it can achieve on the open market. Unless that is closed, we will continue to have a national housing crisis in the short term.
“In urban areas around the country, the market value of a house is in the order of €130 to €150 per square foot.
“However, the cost of building and bringing a house to the point of sale varies between €220 to €250 per square foot – a figure that is even higher in Dublin.
“In an environment where such a big gap exists, there is no incentive to start building, and the State must work to close this uneconomic gap.
“We feel that the State ultimately needs to abolish the 13.5% VAT rate on new homes, backed up by introducing the proposed local development charge rebate scheme on a nationwide basis, a combination of measures which will reduce the cost of a new house by €60,000 on average.
“Introducing a zero vat rate on new homes would reduce a €250,000 property to €220,000.
“The €30,000 presently charged on such a house is an inequitable burden on a young couple who are forced to borrow that sum over the life of a mortgage to pay tax.
“Coupled with the rebate on the local development charge should bring a three-bedroomed family home priced at €250,000 down to something in the order of €190,000.
“This will provide an incentive for the supply chain, but the State also needs to look at the effect that the mortgage deposit rules have had on buyer confidence.
“Just as many couples cannot afford to get on the housing ladder, second-time buyers cannot move and free up cheaper properties for new entrants.
“It is now time the Central Bank revisit the rules, raise exemption limits and include second-time buyers.
“We propose that the price ceiling for first-time buyers should be extended to €330,000 – in line with the average values in Dublin and secondly, second-time buyers should be assisted by allowing them to borrow 90% up to €220,000 as the current requirements are too prohibitive.
“Either of our two options will provide stimulus to allow the market to function, but together, they will provide a sensible solution to solving what is a nationwide housing crisis.”
Michael O’Connor of REA O’Connor Murphy, Limerick, was appointed Chairman of Real Estate Alliance at the Alliance’s recent AGM. Eamonn Spratt of REA Spratt, Dungarvan has been appointed as Vice Chairman.
Ends
Pic enclosed
Sample caption: Michael O'Connor of REA O'Connor Murphy, Limerick, who was appointed Chairman of the Real Estate Alliance Group at the Alliance's AGM in Limerick.
Available for interview: Michael O'Connor, Chair, Real Estate Alliance, 087 2597034
Media information: Darren Hughes, MediaConsult, 086 293 7037, darren@mediaconsult.ie
Failure to recognise that supply problems are not just an issue in Dublin or Cork will do little to alleviate the current impasse which has led to a nationwide accommodation shortage, according to Real Estate Alliance.
“Although the Taoiseach has confirmed that the Government will introduce a local development charge rebate scheme for large housing projects in Dublin and Cork, they are failing to recognise the fundamental supply issues that exist in urban areas nationwide,” said REA Chairman Michael O’Connor.
“Our REA Average House Price Survey has consistently shown the extent to which a lack of supply has driven people out of the housing market and into a crowded rental space across the country.
“In concentrating on urban areas around the country, we have seen micro markets opening up, with specific towns in counties behaving completely differently, influenced by the availability of small numbers of starter homes.
“And further evidence of the nationwide shortage is shown in the recently announced 80% fall in available rental properties compared to this time last year.
“The cause of this nationwide lack of suitable housing supply, especially in three-bedroomed semi detached homes, is that builders cannot yet sell at a profit.
“The average price of a three-bed semi in our Q3 survey was €188,102 – and in simple terms, a builder needs to achieve €200,000 from the sale of a new home to cover the cost of construction.
“There is still a huge gap in the cost of building and bringing a house to the point of sale, and what it can achieve on the open market. Unless that is closed, we will continue to have a national housing crisis in the short term.
“In urban areas around the country, the market value of a house is in the order of €130 to €150 per square foot.
“However, the cost of building and bringing a house to the point of sale varies between €220 to €250 per square foot – a figure that is even higher in Dublin.
“In an environment where such a big gap exists, there is no incentive to start building, and the State must work to close this uneconomic gap.
“We feel that the State ultimately needs to abolish the 13.5% VAT rate on new homes, backed up by introducing the proposed local development charge rebate scheme on a nationwide basis, a combination of measures which will reduce the cost of a new house by €60,000 on average.
“Introducing a zero vat rate on new homes would reduce a €250,000 property to €220,000.
“The €30,000 presently charged on such a house is an inequitable burden on a young couple who are forced to borrow that sum over the life of a mortgage to pay tax.
“Coupled with the rebate on the local development charge should bring a three-bedroomed family home priced at €250,000 down to something in the order of €190,000.
“This will provide an incentive for the supply chain, but the State also needs to look at the effect that the mortgage deposit rules have had on buyer confidence.
“Just as many couples cannot afford to get on the housing ladder, second-time buyers cannot move and free up cheaper properties for new entrants.
“It is now time the Central Bank revisit the rules, raise exemption limits and include second-time buyers.
“We propose that the price ceiling for first-time buyers should be extended to €330,000 – in line with the average values in Dublin and secondly, second-time buyers should be assisted by allowing them to borrow 90% up to €220,000 as the current requirements are too prohibitive.
“Either of our two options will provide stimulus to allow the market to function, but together, they will provide a sensible solution to solving what is a nationwide housing crisis.”
Michael O’Connor of REA O’Connor Murphy, Limerick, was appointed Chairman of Real Estate Alliance at the Alliance’s recent AGM. Eamonn Spratt of REA Spratt, Dungarvan has been appointed as Vice Chairman.
Ends
Pic enclosed
Sample caption: Michael O'Connor of REA O'Connor Murphy, Limerick, who was appointed Chairman of the Real Estate Alliance Group at the Alliance's AGM in Limerick.
Available for interview: Michael O'Connor, Chair, Real Estate Alliance, 087 2597034
Media information: Darren Hughes, MediaConsult, 086 293 7037, darren@mediaconsult.ie
Monday 16 November 2015
REA Munster Auction 12th November Results
150 people registered for the REA Munster Auction at the Limerick Strand Hotel including telephone/proxy bidders. 94% of properties were sold at auction with the remaining properties presently under negotiation. Average prices exceeded 35% above the minimum reserves, in particular there was considerable interest in one commercial property at Barrington Street that had a minimum reserve of €200,000 and sold for €337,000. There were multiple bidders on each of the properties indicating strong demand in the Munster region. We have six auctions planned for next year with the first one to be held in February 2016, details to be posted online in December.
Thursday 12 November 2015
REA Munster Auction 12 November 2015
REA Munster Auction 12 November 2015 Results
| Lot No. |
Property
|
Status
| Price |
|---|---|---|---|
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
|
Knockane, Cappawhite, County Tipperary.
Apt V5, Kingscourt Manor West, Tralee, County Kerry,
Orchard End, Castletown, Pallaskenry, County Limerick,
24 Steamboat Quay, Dock Road, Limerick. 32 The Steeples, County Limerick, Apt 132, City Campus, Block 17, Limerick. 2 Kilmurray Road, Garryowen, County Limerick, Carigeen, Kill, County Waterford Apt 35, Parkview Hall, Castleroy, County Limerick 13 Ashbrook Cresent, Ennis Road, County Limerick. 23 Barrington Street, Limerick, County Limerick Swallows Nest, Limerick Road, Sixmilebridge, Co. Clare 41 Landsdowne Hall, O'Callaghan, County Limerick High Street, Kilfinnane, County Limerick Merton House, Merton Square, Kilkee, County Clare 35 Penrose Court, County Waterford 28 Innishannon, Fairhill, County Cork, Ireland Annagh, Lisnagry, County Limerick Apt 4, 37 Stephens Street, County Waterford |
Sold
Unsold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Sold
Withdrawn
Sold
Sold
Sold
Sold
Withdrawn
Sold
Withdrawn
|
€70,000
€69,000 €43,000 €45,000 €114,000 €50,000 €121,000 €69,000 €124,000 €337,000 €120,000 €28,000 €78,000 €40,000 €25,000 |
Monday 2 November 2015
Athlone Lands Sell For Twice The Asking Price
REA Hynes report strong results from their most recent online auction. The firm brought 15 acres of residential zoned lands to market in Cornamaddy, Athlone to market with an AMV of €150,000. The property quickly hit this figure as bidding rose rapidly to €200,000. Bidding then accelerated, blasting through the €250,000 barrier and finishing at €300,000. The property attracted 12 bids in total from 4 different bidder in 3 cities.
Commenting on the auction, Healy Hynes of REA Hynes had this to say. “Todays strong result is an indication of the increased confidence in the markertplace. Over 250 people vewed the property and the auction was watched live from parties in 7 towns and cities. Although house prices in Athlone are still shy of the figure required to make new home building viable, we are hopeful that results like this will encourage more developers back to Athlone and see badly needed new home stock coming on stream.”
The firm were also bringing a 2 bedroom apartment in Inish House, Golden Island to auction on the same day. Mr. Hynes confirmed that this property was sold prior to auction for an undisclosed sum.
“With an obvious number of unsatisfied underbidders from this auction, it is clear that the demand for development land in Athlone is on the upturn.”
Commenting on the online platform itself, Mr Hynes said “By conducting the auction online, we are able to attract buyers from well outside the local area, opening up a much wider market for our clients. Our results throughout 2015 show that the online space is where the market is moving, we have had 100% success with all our online auctions. Properties have exceeded the reserves; in some cases achieving double what was expected.”
Anyone interested in finding out more about REA Hynes online auction platform can contact Healy Hynes on 0906473838 or email: healy@hynes.ie
Commenting on the auction, Healy Hynes of REA Hynes had this to say. “Todays strong result is an indication of the increased confidence in the markertplace. Over 250 people vewed the property and the auction was watched live from parties in 7 towns and cities. Although house prices in Athlone are still shy of the figure required to make new home building viable, we are hopeful that results like this will encourage more developers back to Athlone and see badly needed new home stock coming on stream.”
The firm were also bringing a 2 bedroom apartment in Inish House, Golden Island to auction on the same day. Mr. Hynes confirmed that this property was sold prior to auction for an undisclosed sum.
“With an obvious number of unsatisfied underbidders from this auction, it is clear that the demand for development land in Athlone is on the upturn.”
Commenting on the online platform itself, Mr Hynes said “By conducting the auction online, we are able to attract buyers from well outside the local area, opening up a much wider market for our clients. Our results throughout 2015 show that the online space is where the market is moving, we have had 100% success with all our online auctions. Properties have exceeded the reserves; in some cases achieving double what was expected.”
Anyone interested in finding out more about REA Hynes online auction platform can contact Healy Hynes on 0906473838 or email: healy@hynes.ie
Friday 23 October 2015
REA Leinster Auction 26th November 2015
The next Leinster Auction will take place at the Pavillion in Leopardstown (RaceCourse) on Thursday November 26th. Residential and commercial properties from throughout the 12 counties will go under the hammer. For nore information, contact REA Leinster Auction team at 01 288 0004
Wednesday 21 October 2015
REA Leinster Auction a success
The first REA Leinster auction was a terrific success, with more than €3,500,000 worth of residential and commercial property sold – with some going for more than 60% over their AMVs.
Eighteen properties were sold under the hammer at the auction in the Louis Fitzgerald Hotel in Newlands Cross, Dublin, on the day at an average price of 21% over their AMVs. An additional four properties are expected to close under private treaty negotiations.
There was widespread interest in the auction with bidders at the hotel being joined by hopeful investors calling in bids from Australia, Canada and the UK.
Harry Sothern, REA Leinster Auction, said: "We are very satisfied with how the auction went. Of the properties sold we had an average price of 21% over the AMV with some properties in fact achieving more than 60% over their AMVs. Bidding came in from Australia, Canada, England as well as locally. We sold a number of properties immediately after the auction and expect to close more in the coming days. Overall we are very satisfied and look forward to running the next Leinster auction in November"
Local agents involved in the auction said that with properties under negotiation expected to conclude in the coming days, they anticipate the auction will have a success rate of 85% when all is finalised.
REA has 26 estate agents in Leinster and 55 nationwide.
For Further information please contact Ed Dempsey (086 172 4449), or
Richard Burke or Craig McKechnie 01 531 3532
Eighteen properties were sold under the hammer at the auction in the Louis Fitzgerald Hotel in Newlands Cross, Dublin, on the day at an average price of 21% over their AMVs. An additional four properties are expected to close under private treaty negotiations.
There was widespread interest in the auction with bidders at the hotel being joined by hopeful investors calling in bids from Australia, Canada and the UK.
Harry Sothern, REA Leinster Auction, said: "We are very satisfied with how the auction went. Of the properties sold we had an average price of 21% over the AMV with some properties in fact achieving more than 60% over their AMVs. Bidding came in from Australia, Canada, England as well as locally. We sold a number of properties immediately after the auction and expect to close more in the coming days. Overall we are very satisfied and look forward to running the next Leinster auction in November"
Local agents involved in the auction said that with properties under negotiation expected to conclude in the coming days, they anticipate the auction will have a success rate of 85% when all is finalised.
REA has 26 estate agents in Leinster and 55 nationwide.
For Further information please contact Ed Dempsey (086 172 4449), or
Richard Burke or Craig McKechnie 01 531 3532
Monday 12 October 2015
REA Average House Q3 survey - Rule change needed as spiralling rents rule out house buying for many
The average three-bed semi in South County Dublin has seen €15,000 wiped off its value in three months as the new deposit rules stifle the higher end of the market, according to a national survey carried out by Real Estate Alliance.
And spiralling rents will cut off mortgages as an option for many young couples unless the Central Bank revisit their deposit rules, raise exemption limits and include second-time buyers, according to REA.
Just as many couples cannot afford to get on the housing ladder, second-time buyers cannot move and free up cheaper properties for new entrants and causing a logjam in the capital.
While the average house price in Dublin city and county has fallen by over €5,000 in the past three months, South County Dublin has been the hardest hit in the country, with prices falling by -4.17% since the end of June.
The average semi detached house nationally now costs €188,102, the Q3 REA Average House Price Survey has found – a slight rise on the Q2 figure of €186,968.
The REA Average House Price Survey concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the end of September.
The price of an average three-bed semi in Dublin city and county has fallen by -1.47% from €339,500 to €334,500 since the end of June.
“Our agents on the ground in Dublin are reporting a growing withdrawal of couples aged between 25-40 from the market due to the new mortgage deposit regulations,” said REA Chief Executive Philip Farrell.
“When the Central Bank introduced the new rules, they stated that they could revisit them, and we believe that they need to do so as a matter of urgency.
“We believe that the new borrowing requirements are exceeding their desired affect and are now starting to prevent the market from functioning in a cohesive manner.
“We propose that the price ceiling for first-time buyers should be extended to €330,000 – in line with the average values in Dublin and secondly, second-time buyers should be assisted by allowing them to borrow 90% up to €220,000 as the current requirements are too prohibitive.
“Falling house prices are not a sign of success or affordability, they are falling because young people cannot afford to qualify for a mortgage, and second-time buyers cannot afford to move out of houses in the €220,000 band.”
Rising rents have had a huge effect on the Dublin market according to Anthony McGee of REA McGee in Tallaght, where prices have dropped -4.3% to €220,000.
“A typical couple are now being expected to pay rent of €1,200 a month on a two-bed apartment in Tallaght.
“When you combine this massive rent with childcare and other expenses, there is very little chance that people will then save the 10/20% deposit required on a property.”
Prices in North County Dublin have decreased by -1% to 247,500 and Dublin city by -0.83%.
There has also been an increase of 5% in the amount of cash buyers (34%) in the Dublin city market, reversing an 18-month trend that has seen mortgage buyers increase.
The average three-bed semi price rose by 0.71% to €206,676 in Tier two – the commuter counties and the larger cities over the three month period.
“Average properties in the extremes of the outer commuter belt also felt an increase in Q3, with Kilkenny rising by 5.45% to €145,000 and Westmeath growing by 4% to €130,000 – both figures well inside the first-time buyers threshold,” said Philip Farrell.
“However, in previously growing areas such as Cork and Galway cities, the market is flat due to prices being over the first-time buyer threshold.
Prices in the rest of the country grew by 2.70% in Q3, to €120,786.
The biggest upward movement in prices over the past three months have come in Roscommon (+8.33% to €65,000), Cavan (+7.79% to €70,000) and Monaghan (6.36% to €117,000) – counties operating off a low base that have not previously felt the benefit of the property uplift that took hold in 2014.
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
Ends
Available for interview:
Barry McDonald, REA spokesperson and Dublin auctioneer.
086 387 3800 bmcdonald@reamcdonald.ie
Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037
And spiralling rents will cut off mortgages as an option for many young couples unless the Central Bank revisit their deposit rules, raise exemption limits and include second-time buyers, according to REA.
Just as many couples cannot afford to get on the housing ladder, second-time buyers cannot move and free up cheaper properties for new entrants and causing a logjam in the capital.
While the average house price in Dublin city and county has fallen by over €5,000 in the past three months, South County Dublin has been the hardest hit in the country, with prices falling by -4.17% since the end of June.
The average semi detached house nationally now costs €188,102, the Q3 REA Average House Price Survey has found – a slight rise on the Q2 figure of €186,968.
The REA Average House Price Survey concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the end of September.
The price of an average three-bed semi in Dublin city and county has fallen by -1.47% from €339,500 to €334,500 since the end of June.
“Our agents on the ground in Dublin are reporting a growing withdrawal of couples aged between 25-40 from the market due to the new mortgage deposit regulations,” said REA Chief Executive Philip Farrell.
“When the Central Bank introduced the new rules, they stated that they could revisit them, and we believe that they need to do so as a matter of urgency.
“We believe that the new borrowing requirements are exceeding their desired affect and are now starting to prevent the market from functioning in a cohesive manner.
“We propose that the price ceiling for first-time buyers should be extended to €330,000 – in line with the average values in Dublin and secondly, second-time buyers should be assisted by allowing them to borrow 90% up to €220,000 as the current requirements are too prohibitive.
“Falling house prices are not a sign of success or affordability, they are falling because young people cannot afford to qualify for a mortgage, and second-time buyers cannot afford to move out of houses in the €220,000 band.”
Rising rents have had a huge effect on the Dublin market according to Anthony McGee of REA McGee in Tallaght, where prices have dropped -4.3% to €220,000.
“A typical couple are now being expected to pay rent of €1,200 a month on a two-bed apartment in Tallaght.
“When you combine this massive rent with childcare and other expenses, there is very little chance that people will then save the 10/20% deposit required on a property.”
Prices in North County Dublin have decreased by -1% to 247,500 and Dublin city by -0.83%.
There has also been an increase of 5% in the amount of cash buyers (34%) in the Dublin city market, reversing an 18-month trend that has seen mortgage buyers increase.
The average three-bed semi price rose by 0.71% to €206,676 in Tier two – the commuter counties and the larger cities over the three month period.
“Average properties in the extremes of the outer commuter belt also felt an increase in Q3, with Kilkenny rising by 5.45% to €145,000 and Westmeath growing by 4% to €130,000 – both figures well inside the first-time buyers threshold,” said Philip Farrell.
“However, in previously growing areas such as Cork and Galway cities, the market is flat due to prices being over the first-time buyer threshold.
Prices in the rest of the country grew by 2.70% in Q3, to €120,786.
The biggest upward movement in prices over the past three months have come in Roscommon (+8.33% to €65,000), Cavan (+7.79% to €70,000) and Monaghan (6.36% to €117,000) – counties operating off a low base that have not previously felt the benefit of the property uplift that took hold in 2014.
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
Ends
Available for interview:
Barry McDonald, REA spokesperson and Dublin auctioneer.
086 387 3800 bmcdonald@reamcdonald.ie
Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037
Friday 9 October 2015
REA Munster auction a massive success
162 people registered for the Auction yesterday at the Limerick Strand Hotel for the REA Minster Auction. The Auction offered a selection of properties all through Munster. The mix of properties were between 2 bedroom apartments, 3 bed semi detached and mid terraced houses and some commercial. Out of the 21 lots that went for sale 16 of them sold at Auction, 2 have been agreed since the Auction, 2 are presently under offer and the final lot is to be placed back on the market by Private Treaty. Michael O’Connor says he is very happy with the turnout today and the bidding that took place. By close of business today we will have 85% of the properties sold which Michael believes is a good return for any Auction sale. Our next Auction is to be held on the 12th November at the Limerick Strand Hotel and we estimate to have circa 30 properties throughout Munster on offer. All information on this Auction will be on our website www.reaoconnormurphy.ie within the coming weeks.
Thursday 1 October 2015
€6.5m of commercial and residential property to go under the hammer at first REA Leinster Auction
€6.5m of commercial and residential property to go under the hammer at first REA Leinster Auction
Louis Fitzgerald Hotel, Newlands Cross, Dublin on the 15th of October
The Real Estate Alliance, one of Ireland’s biggest estate agent groups, has announced the first in a series of auctions comprising properties from its members throughout Leinster.
The first REA Leinster Auction will be held at the Louis Fitzgerald Hotel, Newlands Cross, Dublin, on October 15th. More than 35 residential and commercial properties from throughout the 12 counties will go under the hammer, with the auction expected to raise in excess of €6.5m.
Among the properties up for sale are a hotel in Carlow, office units at Baker’s Corner in South Dublin, an industrial premises in Tullamore and as many as 30 residential properties from throughout Leinster – including 10 in Dublin. Guide prices range from just €33,000 for a two-bedroom house in Carrick On Shannon, Co Leitrim, to €540,000 for a three-bedroom period home in Rathmines, Dublin 6.
Bidding for the auction will take place over the phone, as well as at the hotel and will be streamed live on the internet. All properties are available to view prior to the big day.
Harry Sothern, REA estate agent and organiser of the auction, said: “We have a wide range of superb commercial and residential properties that will appeal to both investors and home-buyers alike. REA agents from all over Leinster are bringing properties to this auction including several prime lots in Dublin.
“This is the first auction that we’ve organised by pooling the tremendous resources of the REA agents in Leinster, and we’re looking forward to hosting a number of similar auctions in the near future.”
Commercial
Included in the portfolio of properties is a wonderful opportunity to purchase a hotel in the heart of Carlow Town. The Courthouse Hotel – with 18 bedrooms, a bar and function room – will be auctioned as part of a lot which also includes a retail unit, apartment and parking for 15 cars. Located close to the Institute of Technology and many of the local tourist attractions, these properties offer scope to be retained as they are or converted into student accommodation. The AMV for this lot is €375,000.
An elevated roadside site of 1.903 ha/4.7 acres in Cloverhill, Ballybrook, Co Cavan, comes with planning permission for 49 residential units. It has an AMV of €60,000.
Also available is a substantial site of circa 0.16 hectares (c. 0.39 Acres) on Main Street, Duleek, Co Meath. It comprises a building that was formerly operated as a public house with parking for approximately 40 cars. It goes under the hammer with an AMV of €195,000.
Other highlights include two office units (130sq.m) in the Forge Building at Baker's Corner on Rochestown Avenue (AMV €165,000) and an industrial premises in the Axis Business Park, Tullamore (302sq.m - AMV €80,000).
Residential
Residential properties include a range of houses and apartments in Dublin and throughout Leinster. There is a two-bedroom house in Carrick-On-Shannon, Co Leitrim, with a guide of €33,000 and a 474 sq.m 6 bedroom property with 1.4 acres of land in Durrow, Co. Laois, guiding €275,000. Many of the properties are in walk-in condition, while some require renovation.
In Dublin there are numerous family homes located across the city. With an AMV €535,000, Hybrasil Strand Road, Portmarnock, Co. Dublin is an imposing 3 bedroom family home with a wonderful open aspect over green space and the estuary. Hybrasil enjoys beautiful modern interiors. A one-bedroom ground floor apartment at The Gasworks, Dublin 4, is on the market at €250,000. Extending to 50 sq.m, this property is located in the heart of Silicon Docks on Barrow Street and surrounded by a host of stylish restaurants & bars.
Number 5 Charleville, Rathmines Road, Rathmines, Dublin 6 is an imposing period family home boasting many modern features while retaining much of its period charm. It is guiding €540,000. Full planning permission for a two storey extension to the rear was granted in Feb 2006 but has since lapsed.
Also Included in the auction is a superb opportunity to acquire five-bedroom detached house in the much sought-after sunny south-east town of Rosslare, Co Wexford, with an AMV of €160,000. Ideal as a primary residence or a holiday home, the property is well fitted and finished, and is located in a small quiet development called Rosefield comprising of just 7 detached homes on Rosslare Strand.
Piper's Cottage, located on the lush parkland grounds of the five star Kinnitty Castle, Co Offaly is as detached two story stone cottage with thatched roof on a circa 1.54 Hectare (3.8 Acre) site with and AMV of €80,000. The property is in need of extensive refurbishment throughout.
Archerstown Lodge, Durrow, Co Laois, is an impressive detached, six-bedroom dormer house extending to c. 474 sq.m and situated on an elevated site of c. 1.4 acres. The property features a cut stone exterior and slate roof, electric entrance gates, front and rear access from the public road with a post and rail driveway. The ground floor has under-floor heating and tiled floors throughout, whilst the first floor is wooden flooring throughout. Stand-out features include the large feature stone open fireplace, the wrought iron spiral staircase and the large bathroom with sunken Jacuzzi. Of the six bedrooms, 5 are ensuite.
REA has 26 estate agents in Leinster and 55 nationwide.
For Further information please contact Ed Dempsey (086 172 4449), or
Richard Burke or Craig McKechnie 01 531 3532
Louis Fitzgerald Hotel, Newlands Cross, Dublin on the 15th of October
The Real Estate Alliance, one of Ireland’s biggest estate agent groups, has announced the first in a series of auctions comprising properties from its members throughout Leinster.
The first REA Leinster Auction will be held at the Louis Fitzgerald Hotel, Newlands Cross, Dublin, on October 15th. More than 35 residential and commercial properties from throughout the 12 counties will go under the hammer, with the auction expected to raise in excess of €6.5m.
Among the properties up for sale are a hotel in Carlow, office units at Baker’s Corner in South Dublin, an industrial premises in Tullamore and as many as 30 residential properties from throughout Leinster – including 10 in Dublin. Guide prices range from just €33,000 for a two-bedroom house in Carrick On Shannon, Co Leitrim, to €540,000 for a three-bedroom period home in Rathmines, Dublin 6.
Bidding for the auction will take place over the phone, as well as at the hotel and will be streamed live on the internet. All properties are available to view prior to the big day.
Harry Sothern, REA estate agent and organiser of the auction, said: “We have a wide range of superb commercial and residential properties that will appeal to both investors and home-buyers alike. REA agents from all over Leinster are bringing properties to this auction including several prime lots in Dublin.
“This is the first auction that we’ve organised by pooling the tremendous resources of the REA agents in Leinster, and we’re looking forward to hosting a number of similar auctions in the near future.”
Commercial
Included in the portfolio of properties is a wonderful opportunity to purchase a hotel in the heart of Carlow Town. The Courthouse Hotel – with 18 bedrooms, a bar and function room – will be auctioned as part of a lot which also includes a retail unit, apartment and parking for 15 cars. Located close to the Institute of Technology and many of the local tourist attractions, these properties offer scope to be retained as they are or converted into student accommodation. The AMV for this lot is €375,000.
An elevated roadside site of 1.903 ha/4.7 acres in Cloverhill, Ballybrook, Co Cavan, comes with planning permission for 49 residential units. It has an AMV of €60,000.
Also available is a substantial site of circa 0.16 hectares (c. 0.39 Acres) on Main Street, Duleek, Co Meath. It comprises a building that was formerly operated as a public house with parking for approximately 40 cars. It goes under the hammer with an AMV of €195,000.
Other highlights include two office units (130sq.m) in the Forge Building at Baker's Corner on Rochestown Avenue (AMV €165,000) and an industrial premises in the Axis Business Park, Tullamore (302sq.m - AMV €80,000).
Residential
Residential properties include a range of houses and apartments in Dublin and throughout Leinster. There is a two-bedroom house in Carrick-On-Shannon, Co Leitrim, with a guide of €33,000 and a 474 sq.m 6 bedroom property with 1.4 acres of land in Durrow, Co. Laois, guiding €275,000. Many of the properties are in walk-in condition, while some require renovation.
In Dublin there are numerous family homes located across the city. With an AMV €535,000, Hybrasil Strand Road, Portmarnock, Co. Dublin is an imposing 3 bedroom family home with a wonderful open aspect over green space and the estuary. Hybrasil enjoys beautiful modern interiors. A one-bedroom ground floor apartment at The Gasworks, Dublin 4, is on the market at €250,000. Extending to 50 sq.m, this property is located in the heart of Silicon Docks on Barrow Street and surrounded by a host of stylish restaurants & bars.
Number 5 Charleville, Rathmines Road, Rathmines, Dublin 6 is an imposing period family home boasting many modern features while retaining much of its period charm. It is guiding €540,000. Full planning permission for a two storey extension to the rear was granted in Feb 2006 but has since lapsed.
Also Included in the auction is a superb opportunity to acquire five-bedroom detached house in the much sought-after sunny south-east town of Rosslare, Co Wexford, with an AMV of €160,000. Ideal as a primary residence or a holiday home, the property is well fitted and finished, and is located in a small quiet development called Rosefield comprising of just 7 detached homes on Rosslare Strand.
Piper's Cottage, located on the lush parkland grounds of the five star Kinnitty Castle, Co Offaly is as detached two story stone cottage with thatched roof on a circa 1.54 Hectare (3.8 Acre) site with and AMV of €80,000. The property is in need of extensive refurbishment throughout.
Archerstown Lodge, Durrow, Co Laois, is an impressive detached, six-bedroom dormer house extending to c. 474 sq.m and situated on an elevated site of c. 1.4 acres. The property features a cut stone exterior and slate roof, electric entrance gates, front and rear access from the public road with a post and rail driveway. The ground floor has under-floor heating and tiled floors throughout, whilst the first floor is wooden flooring throughout. Stand-out features include the large feature stone open fireplace, the wrought iron spiral staircase and the large bathroom with sunken Jacuzzi. Of the six bedrooms, 5 are ensuite.
REA has 26 estate agents in Leinster and 55 nationwide.
For Further information please contact Ed Dempsey (086 172 4449), or
Richard Burke or Craig McKechnie 01 531 3532
Monday 21 September 2015
c. 45 Acres Sold at Auction at Gorteenaskagh, Brittas, Co. Limerick
REA John Lee sold c.45 at Gorteenaskagh, Brittas, Co. Limerick at Auction last week.
The Roadside
Holding extending to c. 45 acres attracted a lot of attention with 3 interested farmers emerging as
proceedings got underway. Bidding
opened at €150,000 increasing in €10,000 bids to €250,000. At
this stage there were 3 bidders and after a short break bidding increased to
€290,000 in €5,000 increments. After further consultation the property was
offered a final time and reached €302,000 with only two bidders. At this stage
the property was withdrawn and after a period of lengthy negotiations a sale
was concluded at a satisfactory higher price in the region of €7,000 per acre.
Thursday 27 August 2015
Athlone - Entire block of houses & apartments for sale for €1.75m
REA Hynes are offering for sale 24 houses & apartments in one lot at a price of €1.75m. The portfolio at Shannon Weir, Athlone comprises of a mix of 1, 2 & 3 bedroom duplex homes and apartments. Built in the late 90’s on the banks of the river Shannnon, an extensive refurbishment program has been indertaken by the owners and the portfolio is fully let. The block will be largely of interest to investors with funds who will view the dramatic fall in values and rising rent returns as a good opportunity to invest.
The entire portfolio is producing a rent roll of €156,840 per annum with review potential to €172,765 according to the Healy Hynes of agents REA Hynes. “A selling price of €1.75 million would provide a net return for a new owner of 8.9%”. stated Mr. Hynes.
The sale comes at a time when sentiment is improving and agents are reporting increased rents and limited new supply. Healy Hynes says their research had shown that apartment values have increased with a rise of 26 per cent. “Despite increases however, apartment values remain over 70% below their peak. With rents rising we are at a turning point in the cycle.” He concluded.
https://www.realestatealliance.ie/residential/brochure/24-units-at-shannon-weir-athlone-east-westmeath/3310784
The entire portfolio is producing a rent roll of €156,840 per annum with review potential to €172,765 according to the Healy Hynes of agents REA Hynes. “A selling price of €1.75 million would provide a net return for a new owner of 8.9%”. stated Mr. Hynes.
The sale comes at a time when sentiment is improving and agents are reporting increased rents and limited new supply. Healy Hynes says their research had shown that apartment values have increased with a rise of 26 per cent. “Despite increases however, apartment values remain over 70% below their peak. With rents rising we are at a turning point in the cycle.” He concluded.
https://www.realestatealliance.ie/residential/brochure/24-units-at-shannon-weir-athlone-east-westmeath/3310784
Monday 24 August 2015
Average age of first time buyer at 33
The average age of the first time buyer in Ireland has risen by four years to 33 over the past decade, with a leading estate agency group predicting that this figure may rise sharply over the next few years.
In 2005 the average first time buyer in Ireland was approximately 29 years old, but, according to Real Estate Alliance (REA), this figure has increased by 14% and is still rising due to a combination of circumstances.
While a rise in the age of housebuyers is also being experienced in the UK and US, the financial impediments placed in front of our returning emigrants combined with high rents and the introduction of the mortgage deposit rules have combined to create a situation that is increasingly delaying the entry of young people into the housing market.
“While many young people are now returning from abroad with the growth in the economy, they are finding it difficult to get mortgage approval without a full year’s employment behind them, which is pushing the average up all the time,” said REA CEO Philip Farrell.
“Through economic or other reasons, our young people left the country in their droves over the past decade, and this has created a lost generation in housing purchase terms.
“A high percentage of young Irish adults in their early 20's choose to travel the world for extensive periods of time – at one stage emigration was claiming 60,000 young people a year.
“In many cases the decision to do this is taken following completion of college education or after learning a skill.
“As a result of this people are taking longer to return home, settle down and have families – we estimate that emigration has put many people’s life plans back by five years.
“We are also finding that young people’s attitude towards property buying in their 20s is changing as a result of the global crash.
“Due to the uncertainty surrounding property values during the recession, many young people chose to 'park the bus' in relation to purchasing their own home and confidence in property as an investment was diminished.
“Interestingly, average life expectancy in Ireland has increased by four years to nearly 81 over the last 15 years. This figure will continue to increase and it is our opinion that young people feel that they have a lot of time on their side.
“As a result of both of these factors, we have seen many potential first time buyers choosing to either remain in the family home or rent for longer periods rather than following the race to get on the property ladder.
“This has had a knock-on effect and the average age of the second-time buyer is 39 and also increasing.
“It is important to remember that there exists particular pockets of the country where these figures are both lower and higher than the average.
“We estimate that the average first time buyer in the capital is already 35, due to high property values.
“However, in rural county towns with a large multinational IT employer, our agents report that the first time buyer average is firmly in the mid to late twenties as well-paid employees take advantage of lower cost housing.
“Over the past two years average property values have increased at a faster pace than average wage levels, therefore the whole area of affordability has become a factor.
“One issue for consideration is the low prevailing interest rates which will not remain so forever and ultimately will also affect the affordability issue.”
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
One of the main issues REA agents are encountering is young people getting adequate access to finance.
“For many people purchasing in 2005, access to credit was not a huge issue.
“They could borrow up to 95% of the purchase price of a house and, in many cases, up to five times their salary.
“This has all changed with the introduction of the Central Bank’s mortgage deposit requirements, which, combined with high rents, have made it increasingly difficult for young people to save deposits, especially in Dublin.
“While their use as a medium to moderate house price increases has been welcome, they have had the effect of suppressing movement in many areas of the market, especially in the ability of the second time buyer to move, thus keeping the supply of housing to the first time buyer at a minimum.
“The new income requirements of 3.5 times salary combined with increased deposit requirements introduced by the Central Bank in February of this year will continue to put pressure on the average age of first time buyers in this country.
REA agents are also reporting that young people are also being forced to reapply for finance due to mortgage offers running out after a sale falling through somewhere in the selling chain.
“Up to recently a huge percentage of banks and receivers sales were falling through due to issues such as title, which meant that young people were having to return to the issuing bank for reapproval.
“This may not be related to the property in question, but often to the next one in the buying chain and has been a source of heartbreak for many potential buyers.”
Robert Grimes of REA Grimes Mortgages in Dublin feels that the traditional view of the property ladder has changed for young people.
“I feel that first time buyers are looking for a house that they can possibly live in for life rather than having to plan to trade up.
“I definitely feel that there is a fear factor of not making the same mistake that family members, friends or work colleagues did a decade ago.”
Ends
In 2005 the average first time buyer in Ireland was approximately 29 years old, but, according to Real Estate Alliance (REA), this figure has increased by 14% and is still rising due to a combination of circumstances.
While a rise in the age of housebuyers is also being experienced in the UK and US, the financial impediments placed in front of our returning emigrants combined with high rents and the introduction of the mortgage deposit rules have combined to create a situation that is increasingly delaying the entry of young people into the housing market.
“While many young people are now returning from abroad with the growth in the economy, they are finding it difficult to get mortgage approval without a full year’s employment behind them, which is pushing the average up all the time,” said REA CEO Philip Farrell.
“Through economic or other reasons, our young people left the country in their droves over the past decade, and this has created a lost generation in housing purchase terms.
“A high percentage of young Irish adults in their early 20's choose to travel the world for extensive periods of time – at one stage emigration was claiming 60,000 young people a year.
“In many cases the decision to do this is taken following completion of college education or after learning a skill.
“As a result of this people are taking longer to return home, settle down and have families – we estimate that emigration has put many people’s life plans back by five years.
“We are also finding that young people’s attitude towards property buying in their 20s is changing as a result of the global crash.
“Due to the uncertainty surrounding property values during the recession, many young people chose to 'park the bus' in relation to purchasing their own home and confidence in property as an investment was diminished.
“Interestingly, average life expectancy in Ireland has increased by four years to nearly 81 over the last 15 years. This figure will continue to increase and it is our opinion that young people feel that they have a lot of time on their side.
“As a result of both of these factors, we have seen many potential first time buyers choosing to either remain in the family home or rent for longer periods rather than following the race to get on the property ladder.
“This has had a knock-on effect and the average age of the second-time buyer is 39 and also increasing.
“It is important to remember that there exists particular pockets of the country where these figures are both lower and higher than the average.
“We estimate that the average first time buyer in the capital is already 35, due to high property values.
“However, in rural county towns with a large multinational IT employer, our agents report that the first time buyer average is firmly in the mid to late twenties as well-paid employees take advantage of lower cost housing.
“Over the past two years average property values have increased at a faster pace than average wage levels, therefore the whole area of affordability has become a factor.
“One issue for consideration is the low prevailing interest rates which will not remain so forever and ultimately will also affect the affordability issue.”
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
One of the main issues REA agents are encountering is young people getting adequate access to finance.
“For many people purchasing in 2005, access to credit was not a huge issue.
“They could borrow up to 95% of the purchase price of a house and, in many cases, up to five times their salary.
“This has all changed with the introduction of the Central Bank’s mortgage deposit requirements, which, combined with high rents, have made it increasingly difficult for young people to save deposits, especially in Dublin.
“While their use as a medium to moderate house price increases has been welcome, they have had the effect of suppressing movement in many areas of the market, especially in the ability of the second time buyer to move, thus keeping the supply of housing to the first time buyer at a minimum.
“The new income requirements of 3.5 times salary combined with increased deposit requirements introduced by the Central Bank in February of this year will continue to put pressure on the average age of first time buyers in this country.
REA agents are also reporting that young people are also being forced to reapply for finance due to mortgage offers running out after a sale falling through somewhere in the selling chain.
“Up to recently a huge percentage of banks and receivers sales were falling through due to issues such as title, which meant that young people were having to return to the issuing bank for reapproval.
“This may not be related to the property in question, but often to the next one in the buying chain and has been a source of heartbreak for many potential buyers.”
Robert Grimes of REA Grimes Mortgages in Dublin feels that the traditional view of the property ladder has changed for young people.
“I feel that first time buyers are looking for a house that they can possibly live in for life rather than having to plan to trade up.
“I definitely feel that there is a fear factor of not making the same mistake that family members, friends or work colleagues did a decade ago.”
Ends
Wednesday 5 August 2015
Time to level the playing field for second-time buyers
The second-time buyer is potentially being excluded from the housing market as a consequence of the recently-introduced Central Bank deposit requirements.
Philip Farrell, CEO of Real Estate Alliance believes that it is time for the Government and the Central Bank to reassess the effects that the recently-introduced deposit requirements are having on the property market both in Dublin and beyond.
While there may be some relief on the way for homeowners with the mooted freezing of Residential Property Charges, the real issue for homeowners looking to move house for whatever reason is their inability to raise 20% of the purchase price.
We are seeing evidence that this is having a marked effect on properties valued at above €300,000, and that rather than turning heat down in the market, it has cut off the flame for people wishing to trade up.
To understand their effect on the market, it is important to look at how these new borrowing requirements are structured.
First-time buyers can still borrow 90% of the purchase price of a house up to a maximum of €220,000. Anything above this figure only qualifies for 80% funding.
This cooling measure is having the desired effect amongst first-time buyers.
However, second-time buyers can only borrow 80% of the entire purchase price as the 90% facility up to a ceiling of €220,000 only applies to first-time buyers.
What is becoming clear is that in particular parts of Dublin, mainly the city centre and south Dublin, this is a bridge too far for second-time buyers.
The primary reason for the introduction of the increased deposit requirements was to take some of the heat out of sectors of the residential markets which had seen noticeable increases over the previous 15 months.
As is synonymous with capital cities in many rebounding property markets, Dublin had experienced the most significant increases in values, with properties increasing by up to 40% in some locations.
The Central Bank intervention in February 2015 was well intentioned and as a direct result we are now witnessing a slowdown in the increase in property values – and a decrease in some cases.
Recent market prices have also been influenced by the ending of the seven-year capital gains exemption relief period and the expiry of six-month loan approvals issued under the previous borrowing requirement structure.
It is now evident that while property values throughout most of the country are now static or experiencing minimal increases, values are now falling in some parts of the capital as highlighted in the recent REA Average House Price survey where Dublin prices were down 5% in Q2.
Our recent survey showed that the average price of a house in Dublin is now over €362,000.
A typical couple who bought an average small house during the boom may have a mortgage of €330,000, and, hopefully, no negative equity.
Let us say they identify a larger home they would like to purchase for €440,000.
Under the previous structure they would need a combined gross annual income of approximately €80,000 and would need to provide 8% of the purchase price of the property which would total €35,200.
Under the new borrowing restrictions they can only borrow up to 3.5 times their combined annual gross salary which would need to be in excess of €100,000
However, where the real challenge comes in is the deposit requirement which has now gone up to €88,000 – that is €52,800 more than previously.
This is a net figure which would require a borrower to earn an extra annual gross figure of approximately €90,000 – putting the next move on the property ladder beyond the means of most average families.
We are seeing that this restriction is starting to have a profound effect on the property values above the €300,000 mark.
And while there is an acute shortage of new homes on the market we may continue to see pressure on values over the next 12 months as people will not be in a position to raise such large deposits.
Many people who had intended to sell or look for something larger will now simply stay put and others may postpone moving plans for a couple of years.
While values outside the capital are much lower, the effect of these restrictions will still be felt, but to a much lesser degree.
I believe the Government should address this anomaly in the market and Real Estate Alliance will be making a pre-budget submission on this issue.
There was real merit in the Central Bank's initial intervention, however this needs to be reassessed as it is now alienating the second-time buyer and will continue to exclude them from the market not alone in Dublin but potentially throughout the rest of the country.
We are proposing that the Central Bank would retain the current price ceiling of €220,000 but bring second time buyers into the net, allowing them to borrow 90% of the purchase price up the ceiling of €220,000 with a maximum of 80% available on monies above this.
If this was the case, the deposit required for our sample couple would drop from €88,000 to €66,000, a saving of €22,000
The indications are that the annual supply of new homes required as a result of our demographics may not be satisfied nationally over the next two years.
However, if the current regime is retained it will act as a significant barrier to those looking to move up the property ladder, freeing up homes in the vital entry sector.
Philip Farrell is CEO of Real Estate Alliance
Monday 6 July 2015
Dublin city house prices fall by 19k in Q2 - survey
The price of an average three-bed semi in Dublin city has fallen by over €19,000 in the past three months as the new rules on mortgage deposits take effect, according to one national estate agency group.
The average semi detached house nationally now costs €186,968, the Q2 Real Estate Alliance Average House Price Index has found – a slight fall on the Q1 figure of €187,153.
The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide.
The price of an average three-bed semi in Dublin city has fallen by -5.02% from €381,667 to €362,500 since the end of March as the new rules on mortgage lending begin to take effect on the market.
The new rules on mortgage lending for houses above €220,000 have contributed to an already apparent softening in the Dublin market, according to REA.
Some areas in the higher end of the south Dublin city market have seen selling prices fall by up to €35,000 (or -7%) since Q1, where the average three-bed semi would sell in the €400,000 range.
However, the market remains relatively stable in areas such as Tallaght and Lucan where prices are closer to the €220,000 threshold but houses are now taking a week longer to sell on average.
"Our survey measures house sales right up the end of June and what we are seeing is the first genuine effects of the mortgage deposit rules on the market," said REA CEO Philip Farrell.
"The rules were brought in to take the heat out of the market, and they have done that, but combined with rising rents and the ending of the Capital Gains Tax exemption, they have had a supressing effect.
"What we are seeing on the ground is a slowdown in interest in the traditional professional properties, as couples find that raising an €80,000 deposit for a €400,000 home is simply beyond their means.
“Our report shows that the average property is now taking seven weeks to sell across the country, and our agents are reporting that the time then required to bring the sale to completion has increased noticeably in recent months due to changes in the mortgage process.
“The time taken to sell the average property in Dublin city and county has jumped from six to eight weeks since Q1, putting it behind the national average for the first time.”
“The average three-bed semi price in the commuter counties and other major cities has continued to rise by 1.23% since March and now stands at €202,882 as buyers seek out affordable commutable housing.
“While some Dublin values are falling, property in Louth is taking off with selling prices in Drogheda rising by over €22,000 or 12.98% in the past three months.
“The price of an average three bed semi in Drogheda has risen from €175,000 in March to €197,500 at the end of June with increased interest from Dublin and commuter purchasers who can find suitable properties under the €220,000 threshold within an hour's commute of the capital.
“We are also seeing a continued improvement in what we term tier three, the rest of the country where prices have risen by 1.32% in Q2 to €119,828.”
The survey shows Q2 rises in Limerick (10.71%), Cork county (9.9%), Kerry (8.39%), Donegal (5.00%), Wicklow (3.33%), Leitrim (3.13%) and Tipperary (2.59%) with Sligo registering a -5.56% fall.
“Supply is still a major issue for agents, with micromarkets existing in counties such as Meath, based on the availability of suitable family homes in each town.
“Where prices are relatively low, and builders can make a profit, we are seeing activity such as a 10.71% rise in Limerick where house prices have increased by €15,0000 to €155,000 since March.”
According to REA, because of the holiday season, the indications are that any significant changes in price will not occur until the end of Q3.
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 50 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
Ends
Available for interview:
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / philip@realestatealliance.ie
Media information:
Darren Hughes, MediaConsult 086 2937037
The average semi detached house nationally now costs €186,968, the Q2 Real Estate Alliance Average House Price Index has found – a slight fall on the Q1 figure of €187,153.
The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide.
The price of an average three-bed semi in Dublin city has fallen by -5.02% from €381,667 to €362,500 since the end of March as the new rules on mortgage lending begin to take effect on the market.
The new rules on mortgage lending for houses above €220,000 have contributed to an already apparent softening in the Dublin market, according to REA.
Some areas in the higher end of the south Dublin city market have seen selling prices fall by up to €35,000 (or -7%) since Q1, where the average three-bed semi would sell in the €400,000 range.
However, the market remains relatively stable in areas such as Tallaght and Lucan where prices are closer to the €220,000 threshold but houses are now taking a week longer to sell on average.
"Our survey measures house sales right up the end of June and what we are seeing is the first genuine effects of the mortgage deposit rules on the market," said REA CEO Philip Farrell.
"The rules were brought in to take the heat out of the market, and they have done that, but combined with rising rents and the ending of the Capital Gains Tax exemption, they have had a supressing effect.
"What we are seeing on the ground is a slowdown in interest in the traditional professional properties, as couples find that raising an €80,000 deposit for a €400,000 home is simply beyond their means.
“Our report shows that the average property is now taking seven weeks to sell across the country, and our agents are reporting that the time then required to bring the sale to completion has increased noticeably in recent months due to changes in the mortgage process.
“The time taken to sell the average property in Dublin city and county has jumped from six to eight weeks since Q1, putting it behind the national average for the first time.”
“The average three-bed semi price in the commuter counties and other major cities has continued to rise by 1.23% since March and now stands at €202,882 as buyers seek out affordable commutable housing.
“While some Dublin values are falling, property in Louth is taking off with selling prices in Drogheda rising by over €22,000 or 12.98% in the past three months.
“The price of an average three bed semi in Drogheda has risen from €175,000 in March to €197,500 at the end of June with increased interest from Dublin and commuter purchasers who can find suitable properties under the €220,000 threshold within an hour's commute of the capital.
“We are also seeing a continued improvement in what we term tier three, the rest of the country where prices have risen by 1.32% in Q2 to €119,828.”
The survey shows Q2 rises in Limerick (10.71%), Cork county (9.9%), Kerry (8.39%), Donegal (5.00%), Wicklow (3.33%), Leitrim (3.13%) and Tipperary (2.59%) with Sligo registering a -5.56% fall.
“Supply is still a major issue for agents, with micromarkets existing in counties such as Meath, based on the availability of suitable family homes in each town.
“Where prices are relatively low, and builders can make a profit, we are seeing activity such as a 10.71% rise in Limerick where house prices have increased by €15,0000 to €155,000 since March.”
According to REA, because of the holiday season, the indications are that any significant changes in price will not occur until the end of Q3.
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 50 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
Ends
Available for interview:
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / philip@realestatealliance.ie
Media information:
Darren Hughes, MediaConsult 086 2937037
Monday 29 June 2015
REA Munster Auction on 8th of October 2015
The next REA Munster Auction will be held on Thursday 8th October at The Limerick Strand Hotel, Limerick.
More Properties to be announced
Contact REA O'Connor Murphy on +353 61 279300 www.reaoconnormurphy.ie
Guide to Buying at Auction Guide to Selling at Auction Terms & Conditions
More Properties to be announced
Contact REA O'Connor Murphy on +353 61 279300 www.reaoconnormurphy.ie
Guide to Buying at Auction Guide to Selling at Auction Terms & Conditions
Monday 22 June 2015
Online Auction live in July with REA Hynes
REA Hynes have announced a strong interest in their upcoming July online auction. “We have had great uptake” said Healy Hynes of REA Hynes. “Property all over the midlands; from Athlone to Kilbeggan, Ballymahon to Ballinasloe have been entered to date”.
“There is a growing realisation from sellers and buyers” stated Mr. Hynes “that the market is changing rapidly & online sales are the way the market is going. Buyers are get busier and busier every day; buying property online is a natural extension of the way they are living their lives.”
The benefits of the service are numerous according to Mr Hynes. “For a start it means that all due diligence is done prior to the any offers being made. This speeds up the entire process, getting buyers into their new home faster and ensuring that sellers can move on quicker.”
Mr., Hynes also expressed that this transparency means that there are no nasty surprises for buyers. “Any issues they may have, they can get their solicitors to look into before the bidding even starts."
Buyers can have complete confidence in bidding according to Mr. Hynes as every bidder is validated before being given access to contracts. Mr. Hynes believes this benefits buyers as if bidding against someone, they know that they can complete – buyers also get to see each others screen name so they can have full confidence in the bidding process.
Selling online gives greater security according to Mr. Hynes. As parties are contracted to complete at the end of a successful auction, both buyers & sellers have confidence in the sale.
The REA Hynes online auction is to be held at www.auctionroom.ie. Sellers interested in listing their property in the next REA Hynes online auction, can drop an email to auctions@hynes.ie or call their Church Street, Athlone office on 0906473838
“There is a growing realisation from sellers and buyers” stated Mr. Hynes “that the market is changing rapidly & online sales are the way the market is going. Buyers are get busier and busier every day; buying property online is a natural extension of the way they are living their lives.”
The benefits of the service are numerous according to Mr Hynes. “For a start it means that all due diligence is done prior to the any offers being made. This speeds up the entire process, getting buyers into their new home faster and ensuring that sellers can move on quicker.”
Mr., Hynes also expressed that this transparency means that there are no nasty surprises for buyers. “Any issues they may have, they can get their solicitors to look into before the bidding even starts."
Buyers can have complete confidence in bidding according to Mr. Hynes as every bidder is validated before being given access to contracts. Mr. Hynes believes this benefits buyers as if bidding against someone, they know that they can complete – buyers also get to see each others screen name so they can have full confidence in the bidding process.
Selling online gives greater security according to Mr. Hynes. As parties are contracted to complete at the end of a successful auction, both buyers & sellers have confidence in the sale.
The REA Hynes online auction is to be held at www.auctionroom.ie. Sellers interested in listing their property in the next REA Hynes online auction, can drop an email to auctions@hynes.ie or call their Church Street, Athlone office on 0906473838
Monday 15 June 2015
Abolish VAT on new homes so building can start again: REA
Abolishing development levies and the VAT rate on new homes are the key components to solving the national housing supply crisis, a leading national estate agency has claimed.
A nationwide lack of suitable housing supply, especially in three and four-bed family starter homes, has led to a stagnated property market as builders cannot yet make a profit.
However, Real Estate Alliance (REA) have claimed that the abolition of the 13.5% VAT rate on new homes will help close a gap that is making new homes financially impossible to build.
This should be backed up by the abolition of the Part Five levy for social and affordable housing, a combination of measures which they claim will reduce the cost of a new house by €60,000 on average.
“There is a huge gap in the cost of building and bringing a house to the point of sale and what it can achieve on the open market. Unless this gap is closed, we will not halt and solve the growing national housing crisis,” said REA CEO Philip Farrell.
“In urban areas around the country, the market value of a house is €154 per square foot, based on the Real Estate Alliance average house price survey price of €162,477 at the end of March.
“This rises to €157 per square foot in commuter areas and the larger cities outside Dublin where the average house price is €165,798.
“However, the cost of building and bringing a house to the point of sale in these areas is anything up to €220 per square foot – a figure that is even higher in the capital.
“In an environment where such a big gap exists, there is no incentive to start building, and the State must work to close this uneconomic gap.
“There are only two ways of closing the gap to make it financially viable for builders to build and that is for prices to rise or for the cost of building to be reduced.
“There is an estimated demand for 25,000 new homes in Ireland this year, and supply will fall 10,000 units short of that figure.
“In country and commuter areas where the average value is below €200,000, supply of new homes will remain reduced even if lands become available due to financial issues for developers who need to sell houses above that mark to make a profit.”
Kilkenny REA agent Michael Boyd is one of the promoters of the idea to abolish VAT and Part Five on new homes and feels that two major things have to happen.
“Introducing a zero vat rate on new homes would reduce a €250,000 property to €220,000.
“Secondly, the State needs to abolish Part Five levies, which have not been a success and rein in local development charges which should largely have been replaced by the Local Property Tax (LPT).
“Implementing the above measures should bring a three-bedroomed family home priced at €250,000 down to something in the order of €190,000.
“This will allow building to start, local authorities and private purchasers to buy, banks to lend and the housing market to function, as well as providing massive employment spin offs to the economy.”
Ends
Available for interview:
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / philip@realestatealliance.ie
Media information:
Angela McCormick, MediaConsult, angela@mediaconsult.ie, 087 790 5240
Monday 8 June 2015
Auction in Kilkenny for 3 lots on the 16th of July at 3pm
Real Estate Alliance are holding a Property Auction on the 16th of July at 3pm at the New Park Hotel in Kilkenny for 3 separate lots. The lots comprise of Industrial/Commercial development sites, located within easy reach of major urban centres:
| Lot 1. Lot 2. Lot 3. |
Carlow, Co. Carlow. Kilkenny, Co. Kilkenny Dungarvan Co. Waterford. | View Details View Details View Details |
Tuesday 2 June 2015
Crohane House, Killenaule, Co. Tipperary for Sale with REA Grace
Crohane House is situated in the beautiful and tranquil setting of the Slievenamon Valley, an area of outstanding natural beauty in Co. Tipperary. This enchanting 17th century farmhouse with enclosed courtyard with stables, sits on c 1.6 acres. Proudly standing on an elevated perch, the site offers stunning views of the surrounding countryside including a picturesque ancient church.
A long meandering private road leads through rolling hills, a quaint church and mature trees towards this property, the likes of which rarely come to market. In an area of unspoilt natural beauty, this home is tucked away in the midst of a wide range of mature broadleaf trees such as oak, ash, birch and horse chestnut. With calming views of the Tipperary countryside, this property is a wonderland of discovery and adventure and has so much potential beyond the sum of its many unique parts.
From the beautiful babbling brook that passes through the stone courtyard carrying all the sounds of nature to delight and enthral, to the rustic courtyard which provides a blank canvas for a multitude of possibilities...Artist Studios, Self-Catering Apartments, Equestrian hobbyists, recording studio, cookery school, a quiet retreat but with broadband and much more. Rarely do we see a property tick so many boxes.
This house captures the imagination, with its period design and atmosphere yet with all the modern conveniences of a refurbishment. The potential is limitless with this property and it could easily be adapted to one's own needs as the accommodation is very flexible.
The magical feeling that one gets from this property must be experienced. Contract Robbie Grace at REA Grace on 056 7725163
A long meandering private road leads through rolling hills, a quaint church and mature trees towards this property, the likes of which rarely come to market. In an area of unspoilt natural beauty, this home is tucked away in the midst of a wide range of mature broadleaf trees such as oak, ash, birch and horse chestnut. With calming views of the Tipperary countryside, this property is a wonderland of discovery and adventure and has so much potential beyond the sum of its many unique parts.
From the beautiful babbling brook that passes through the stone courtyard carrying all the sounds of nature to delight and enthral, to the rustic courtyard which provides a blank canvas for a multitude of possibilities...Artist Studios, Self-Catering Apartments, Equestrian hobbyists, recording studio, cookery school, a quiet retreat but with broadband and much more. Rarely do we see a property tick so many boxes.
This house captures the imagination, with its period design and atmosphere yet with all the modern conveniences of a refurbishment. The potential is limitless with this property and it could easily be adapted to one's own needs as the accommodation is very flexible.
The magical feeling that one gets from this property must be experienced. Contract Robbie Grace at REA Grace on 056 7725163
Monday 25 May 2015
REA Munster Auction huge success
The REA Munster Regional Auction was held Thursday May 21st in The Limerick Strand Hotel with a large crowd in attendance and it proved to be a huge success with 80% of properties sold on the day. There were multiple bidders which resulted in prices in excess of 11.2% above the minimum reserve achieved.
According to Michael O'Connor of REA O'Connor Murphy " We are delighted with our results today. The large attendance gives an accurate indication that the property market in the region is well and truly on the road to a full recovery and the prices achieved on some properties indicates the continuous rise in values.
We look forward to our next REA Munster Auction on October 1st of this year to be held again in the Limerick Strand Hotel".
Monday 11 May 2015
REA T & J Gavigan 75 years in business
In the current economy, there are not too many businesses who can say they have been in operation for 75 years, but this is the proud position that REA T & J Gavigan holds, having been established in 1940 by John Gavigan and his brother Tom. The Gavigan brothers grew up in Brownstown, Co. Westmeath. Their strong business ethos was evident early on in both their careers. John learned the property trade initially in Shields General Merchants in Carrickmacross and Tom in the shoe business in Kells.
In 1940, Tom and John Gavigan established T & J Gavigan in a small office on Newmarket Street, Kells which is now part of Paddy Duff’s shoe shop in Kells. Times were different then, communication was conducted in person and not be telephone. Deals were struck at the local fairs at Kells, Delvin, Oldcastle and Ballyjamesduff. Business was mainly about land sales and lettings and all paid in cash as very few people had bank accounts at the time.
In the 1940’s The Company had a few major sales at the time. Farms such as Boltown Hall, Kells sold at auction in March 1945 for £4000. This included a valuable residential property on c. 185 acres. Another high profile sale was c. 232 acres at Cullendragh, Batterstown, Co. Meath which sold at auction in October 1942 for c. €5,500.
T & J Gavigan went from strength to strength and in 1955 Tom’s son also known as Tom joined forces. Tom has been at the helm of the business since then. No over 80 years of age, Tom is still dealing in property sales particularly with land sales and lettings. Tom has driven the business through the decades and has lived through the many peaks and troughs of the property market. The focus of the business has moved with the times, through a predominantly land sales based business to a modern firm of Chartered Surveyors and Auctioneers. The company sell and let residential, agricultural and commercial property, carry out portfolio and due diligence appraisals and provide consultancy. They have a valuation department that provides mortgage, probate, commercial and red book valuations.
Various historical influences have steered this change such as when the Ground Rent Act was passed in 1967 permitting tenants to acquire the freehold ownership of their property. Prior to that time in Kells for example, most properties in the town were owned by the Headfort Estate. This was a major breakthrough for the property market and thus commenced the movement of both residential and commercial property sales throughout the country.
The subsequent economic dips and peaks of the 60s, 70s, 80s, 90s and 00s had further impact on how the property business evolved into what it is today with residential and commercial sales being the centre of the business.
The Gavigan family have been key players in the auctioneering business in Meath since those early days of the 1940s. In 1961 Tom bought the site on the corner of Newmarket Street and Farrell Street in Kells where the business has operated from ever since. A major professional highlight for Tom was his appointment as President of the IAVI in 1985. This was a proud moment for him.
The biggest compliment for any parent is when their offspring follow in the same career path as them. Tom and Marie Gavigan have four out of their six children working in property, three of which are involved with REA T & J Gavigan that’s Tom, Michael and Cara. Eimer is the Group Marketing Manager of Real Estate Alliance of which T & J Gavigan were one of the founding members.
Michael Gavigan set up T & J Gavigan on Railway St. in Navan in 1993 and this business continues to grow from strength to strength while Tom Jnr. and Cara run the Kells office. T & J Gavigan employ a number of professionals across the residential, commercial and land sectors with expertise in sales, letting and valuations. It is testament to Tom Senior that he still works in the Kells office and looks after some of the land sales. Property is in the blood and the fact that much of the Gavigan family work in the business strengthens the credibility of the Gavigan brand and this is proved by their 75 years in business. The company would not be where it is today without the great team that work in the business. This includes Ann Moloney who deals with land lettings and general enquiries, Miriam Kiernan who is the office and accounts manager, Nessa Fitzsimons who runs the residential sales and lettings and Janette Ashmore who is Valuation’s Administrator. In the Navan office Jane Monaghan is head of residential agency, Maggie Quine is the Office Administrator and Commercial Specialist, Janet is Accounts Manager and Noelle Burke our most recent recruit is in charge Brand Marketing. There is a great deal of professional expertise in the Kells and Navan offices with 12 employees who work very hard to get good results for their clients.
In 1940, Tom and John Gavigan established T & J Gavigan in a small office on Newmarket Street, Kells which is now part of Paddy Duff’s shoe shop in Kells. Times were different then, communication was conducted in person and not be telephone. Deals were struck at the local fairs at Kells, Delvin, Oldcastle and Ballyjamesduff. Business was mainly about land sales and lettings and all paid in cash as very few people had bank accounts at the time.
In the 1940’s The Company had a few major sales at the time. Farms such as Boltown Hall, Kells sold at auction in March 1945 for £4000. This included a valuable residential property on c. 185 acres. Another high profile sale was c. 232 acres at Cullendragh, Batterstown, Co. Meath which sold at auction in October 1942 for c. €5,500.
T & J Gavigan went from strength to strength and in 1955 Tom’s son also known as Tom joined forces. Tom has been at the helm of the business since then. No over 80 years of age, Tom is still dealing in property sales particularly with land sales and lettings. Tom has driven the business through the decades and has lived through the many peaks and troughs of the property market. The focus of the business has moved with the times, through a predominantly land sales based business to a modern firm of Chartered Surveyors and Auctioneers. The company sell and let residential, agricultural and commercial property, carry out portfolio and due diligence appraisals and provide consultancy. They have a valuation department that provides mortgage, probate, commercial and red book valuations.
Various historical influences have steered this change such as when the Ground Rent Act was passed in 1967 permitting tenants to acquire the freehold ownership of their property. Prior to that time in Kells for example, most properties in the town were owned by the Headfort Estate. This was a major breakthrough for the property market and thus commenced the movement of both residential and commercial property sales throughout the country.
The subsequent economic dips and peaks of the 60s, 70s, 80s, 90s and 00s had further impact on how the property business evolved into what it is today with residential and commercial sales being the centre of the business.
The Gavigan family have been key players in the auctioneering business in Meath since those early days of the 1940s. In 1961 Tom bought the site on the corner of Newmarket Street and Farrell Street in Kells where the business has operated from ever since. A major professional highlight for Tom was his appointment as President of the IAVI in 1985. This was a proud moment for him.
The biggest compliment for any parent is when their offspring follow in the same career path as them. Tom and Marie Gavigan have four out of their six children working in property, three of which are involved with REA T & J Gavigan that’s Tom, Michael and Cara. Eimer is the Group Marketing Manager of Real Estate Alliance of which T & J Gavigan were one of the founding members.
Michael Gavigan set up T & J Gavigan on Railway St. in Navan in 1993 and this business continues to grow from strength to strength while Tom Jnr. and Cara run the Kells office. T & J Gavigan employ a number of professionals across the residential, commercial and land sectors with expertise in sales, letting and valuations. It is testament to Tom Senior that he still works in the Kells office and looks after some of the land sales. Property is in the blood and the fact that much of the Gavigan family work in the business strengthens the credibility of the Gavigan brand and this is proved by their 75 years in business. The company would not be where it is today without the great team that work in the business. This includes Ann Moloney who deals with land lettings and general enquiries, Miriam Kiernan who is the office and accounts manager, Nessa Fitzsimons who runs the residential sales and lettings and Janette Ashmore who is Valuation’s Administrator. In the Navan office Jane Monaghan is head of residential agency, Maggie Quine is the Office Administrator and Commercial Specialist, Janet is Accounts Manager and Noelle Burke our most recent recruit is in charge Brand Marketing. There is a great deal of professional expertise in the Kells and Navan offices with 12 employees who work very hard to get good results for their clients.
Tuesday 28 April 2015
30 Acres in Ballypierce, Buncloud, Co. Wexford for Auction
REA Sothern Carlow are holding an Auction for 30 Acres at Ballypierce, Buncloud, Co. Wexford. The Auction will take place on the 19th of May at 2.30pm at the Seven Oaks Hotel, Carlow.
More Details
More Details
Monday 27 April 2015
WIN A LUXURIOUS GETAWAY AT POWERSCOURT HOTEL RESORT & SPA.
WIN A LUXURIOUS GETAWAY AT POWERSCOURT HOTEL RESORT & SPA.
The Prize includes a luxurious two-night stay for you & a guest with breakfast each morning and a dinner for two in Sika Restaurant on the evening of your choice. Also included is a choice of two 50 minute spa treatments in the award winning ESPA or a round of Golf for two at Powerscourt Golf club.
Enter this competition by liking, tagging and sharing the Competition Post on the REA Facebook page. https://www.facebook.com/Realestatealliance
Closing date 15th of May 2015.
T&Cs
Valid for 12 months from issue of voucher & Closing date 15th May 2015).
Voucher not valid from 24th Dec 2015 to 1st Jan 2016.
Voucher valid for midweek (Sunday to Thur)
Voucher cannot be redeemed in part or full for cash and cannot be used in conjunction with any other offer. No exchange for services not listed.
The Prize includes a luxurious two-night stay for you & a guest with breakfast each morning and a dinner for two in Sika Restaurant on the evening of your choice. Also included is a choice of two 50 minute spa treatments in the award winning ESPA or a round of Golf for two at Powerscourt Golf club.
Enter this competition by liking, tagging and sharing the Competition Post on the REA Facebook page. https://www.facebook.com/Realestatealliance
Closing date 15th of May 2015.
T&Cs
Valid for 12 months from issue of voucher & Closing date 15th May 2015).
Voucher not valid from 24th Dec 2015 to 1st Jan 2016.
Voucher valid for midweek (Sunday to Thur)
Voucher cannot be redeemed in part or full for cash and cannot be used in conjunction with any other offer. No exchange for services not listed.
Thursday 23 April 2015
The price of an average three bedroom semi has risen by just 1.32% nationwide in the first three months of 2015,
The uneconomical cost of building
represents a major threat to the health of a property market that has only
recently returned to normality, according to Real Estate Alliance.
The price of an average three bedroom semi
has risen by just 1.32% nationwide in the first three months of 2015, with
prices dropping by over -6% in one area of Dublin, according to a national
survey carried out by the group.
The Real Estate Alliance Average house
index concentrates on Ireland's typical stock home, the three-bed semi, giving
a picture of the property market in towns and cities countrywide.
The average semi detached house nationally,
including Dublin, now costs €187,153 the latest REA survey has found – a rise
of 16.23% over the past 12 months.
However, the average house has risen by
just 1.32%, or €7,005, across the country over the December 2014 figure of
€184,713 – and the lack of a supply of suitable housing is a feature of the
market across the country.
“There is an acute lack of supply of
three-bedroom family homes because it is still not financially viable in many
areas for builders to construct homes and make a profit,” said REA Chief
Executive Philip Farrell.
And while Dublin led the way in the market
recovery last year, prices have fallen by -0.28% in Dublin city and county in
the opening quarter, where the average semi-d now stands at €352,500.
“Following the Q4 slowdown, Dublin is now
feeling the joint effects of the abolition of the Capital Gains Incentive and
the and the introduction of increased deposit requirements by the Central
Bank,” said Philip Farrell.
“However, in areas of the capital where
average values are below the €220,000 threshold, strong demand still exists
from both first time buyers and investors.”
In Skerries, North Dublin, prices have
dropped by €20,000 in three months, with the average semi detached home now
costing €290,000.
REA agent Dermot Grimes says the Central
Bank’s new deposit rules have definitely had an impact in the market, but
buyers are also happy to take their time.
“Prices have come back to mid-2014 levels.
The market has stagnated due to the immediate impact of the new lending
restrictions, allied with the emergence of a more cautious buyer who is
prepared to wait for the right house,” said Mr Grimes.
In Rathcoole, REA McGee report a €10,000
drop in prices since December to €320,000, while REA McDonald in Lucan state
that prices have fallen by -1.79% in the west side of the city due to lack of
supply of suitable housing.
However, while demand for smaller 3 beds and
apartments is strong, Barry McDonald from REA McDonald expects the market to
rebound with signs of building sites in full swing fuelling demand.
In a complete shift in the market, the
biggest increases over the last year have come from what is termed Tier Three –
the country areas, outside of the pale and the major cities, which have gone up
by 17.28%, ahead of Dublin city’s 17.18%, and 14.82% when Dublin city and
county are combined.
Taking a view over the past six months, property
price rise rates in the rest of the country (5.1%) have more than trebled that
of the capital (1.55%).
In the opening quarter this year, there
have been significant increases in Carlow (7.50%), Kilkenny City (7.41%),
Waterford City (5%) and Wexford (8%), while the rise in sterling has seen a
jump in property prices in Bundoran in Donegal of 7.69%.
While uncertainty in the market over the
Central Bank’s new lending deposit restrictions has played its part, Real
Estate Alliance believe that supply in the market is the biggest issue that the
Government needs to address.
“Our survey is taken around the country,
and in almost every case, supply is the defining factor,” said Philip Farrell.
“For example, there will be a demand for
10,000 new homes in Dublin this year and there will only be 6,000 built.
“In country and commuter areas where the
average value is below €200,000, supply of new homes will remain reduced even
if lands become available due to profitability issues for developers who need
houses to sell for above that mark.
“This is caused by the current high cost of
construction which is exacerbated by the significant taxes which are payable on
a new home (28% of the cost) and the recently increased building regulations.
“Until the costs of building are lowered,
or the market takes an unlikely jump, we are looking at being unable to satisfy
the demand that exists in the market.
“We are also seeing a series of micro
markets opening up within counties such as Meath where Trim (12.9%) has shown a
massive rise in the past three months while Ashbourne has actually fallen
(-0.71%) in Q1.
“Ashbourne had previously shown growth in
the early part of 2014, while Trim is now firmly in the focus of a new wave of
commuters and showing its first significant rise.
“It now takes six weeks to sell the average
house in Dublin, a week longer than it did in September 2014, while the
situation in Tier Three (the rest of the country) has reversed, with time to
sell dropping from seven weeks to six on average.”
The rise in mortgage buyers has continued
across the nation, with cash purchasers falling from 50% of the market in
September 2014 to 42% at the end of March 2015.
In Dublin, 70% of purchases are now funded
by mortgages, an increase of 13 points from six months ago.
However, in the Tier Two areas of the
commuter belt and the major cities, cash buyers form 43% of the market, down to
combination of cheaper prices and the influence of the strength of sterling and
returned emigrants.
“With the new regulations coming in, we are
seeing commuters starting to move out further again in almost a second
migration,” said Philip Farrell.
“In these pockets of localised demand in
the commuter belt, we are seeing first time buyers now starting to look at the
further extremes of Tier Two due to the fact that they will always fall under €220,000.
“Many of these have loan approval from 2014
which is due to expire in the next few months and we are seeing a “use it or
lose it” scenario where we have a stock of new housing in commuter areas.
“Investors are starting to look at rental
properties again, which we can see in areas such as Tallaght (+4.55% in Q1)
with more affordable house prices but significant rental demand.
“Rental demand is only going one way due to
many people being in a holding pattern and an Increase of 10-15% in 2014 could
quite possibly be matched in 2015.
“This is happening in a more consolidated
way as the amateur investor has been largely removed from the market.”
Ends
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