Monday 9 February 2015
The price of an average three-bed semi in Irish towns and cities rose by 20.68% in 2014, according to a national survey carried out by Real Estate Alliance.
While every county in the State showed an increase in three-bed semi prices, the market slowed down in the Dublin area between September and December 2014 (Q4) with one area registering a -6.67% drop in prices.
The average semi detached house nationally now costs €184,713, the latest REA survey has found – a rise of 2.63% on the Q3 figure of €179,981.
The Real Estate Alliance Average House Index concentrates on Ireland's typical stock home, the three-bed semi, giving an accurate picture of the property market in towns and cities countrywide.
While semi ds in Dublin recorded a 21.66% increase over the year, the biggest rise was in the commuter counties and large cities such as Cork and Galway where properties in what is now termed Tier Two rose by 26.24% from €157,824 to €199,235.
And while the Dublin market slowed to just an 0.89% increase in Q4, and the commuter counties rose by 3.42%, the biggest upswing came in the rest of the country (or Tier Three), which saw a rise of 3.92% – the first time that rural Ireland had surged ahead in the figures all year.
The average three-bed semi in Dublin is now selling at €379,167, an increase of just over €3,000 on Q3, as the market in the capital stalled in Q4.
This price is almost twice that of the commuter county stock, and 2.5 times that of the average rural semi, which is priced at €147,587.
“Our survey shows that in all areas of Dublin, parts of Cork City, Galway City, North Wicklow and Kildare, the price of the average semi detached house exceeds the Central Bank’s new threshold of €220,000 at which banks can lend 90% of the value,” said Real Estate Alliance CEO Philip Farrell.
“However, other parts of Wicklow, Kildare, Louth and Meath all offer average housing under that limit for those looking to buy in the commuter belt with accessibility to Dublin.”
While the capital as a whole saw just a 0.89% average rise from September to December, areas such as Lucan saw a fall of -6.67% as the price of the average semi-d went from €300,000 back down to €280,000.
All other areas in the city were flat in Q4 except for South Dublin (5.56%) and the city centre (3.45%).
“Following an increase in property values of up to 30% over the previous 15 months, the market in Dublin took a breather in Q4,” said Philip Farrell.
“Traditionally the capital is the first to rise and slow down in any turning market, and we have seen this in Q4, particularly in popular first-time buyer markets like the Lucan area.
“Much of this is due to the air of uncertainty that surrounded the introduction of the new Central Bank lending restrictions, and now that we have clarity here, we should see a return to a more normal market.
“Our agents in Dublin expect prices to rise by six per cent this year. This is in comparison to our nationwide average expectation of a nine per cent rise in property prices in 2015.”
Evidence of a cooling in the market is seen by the fact that it took six weeks to sell the average property in Dublin in Q4, a week longer that Q3.
The same experience has been repeated in the commuter counties and major cities, which saw its time to sell go from six weeks to seven in Q4.
However, market activity continued apace in Tier Three, with properties in the rest of the country still taking seven weeks to sell as in Q3.
Just how far this market has grown in 2014 is evidenced by the fact that these properties were taking 13 weeks to sell 12 months ago.
But the biggest change in buying habits in 2014 has been the return of the banks to the marketplace with the amount of cash transactions dropping from an average of 66% in December 13 to 44% in December 2014.
Real Estate Alliance (REA) is Ireland’s leading property group ofChartered Surveyors with over 50 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.
Thursday 5 February 2015
1. What Information do we need? To give you the best possible advice we will need to visit the property and gather the following details:
- Photographs of property
- Title – Freehold – Leasehold (Tenancy if relevant)
- Site plan
- Confirm title, planning documents, certified maps.
- Review inventory,
- Discuss Energy Rating (BER Cert) Requirements. A BER Cert is simply an energy label for your home similar to that on electrical appliances. The label has a scale of A-G. A-rated homes are the most energy efficient and G the least efficient. Since 1st of January 2009 a BER Certificate is compulsory for all homes being offered for sale or lease/rent. We cannot advertise the property for sale without a BER Cert.
3. Methods of sale: There are 3 main methods of sale used when offering a property for sale. The options include Private Treaty, Public Auction and Tender and whilst each method has its own advantages and disadvantages. We will discuss what is suitable for your property & we will advise you of our recommended option.
4. Contract Once we have agreed on the most appropriate method of sale based on the attributes of the property and taking due cognisance of your requirements and circumstances we will then discuss this with your Legal Representative to ensure everything is in order.
5. Professional Fee: We will agree and confirm our sale fee plus V.A.T. The aforesaid fee is payable in the event of a successful sale. There will also be an additional listing/outlay cost for marketing.
6. Marketing Campaign We will provide a marketing campaign specifically tailored to your property that is effective and efficient and will include For Sale Sign, within the boundary of your property & uploads on the various websites and a colour brochure. We will also advise of discretionary optional extras for marketing your property.
7. Reporting: We will keep you updated on interest shown in your property. We will also keep in contact with your Solicitor during the campaign. Any queries/potential difficulties pertaining to Title/Boundaries/Planning will be brought to your attention.
8. Completion On securing an agreement on price we will then seek a Booking Deposit from the purchaser (subject to contract).
- Your Solicitor and the purchasers Solicitor will be informed accordingly.
- Contracts are then sent by your Solicitor to the purchasers Solicitor.
- Contracts are then signed and a full deposit of 10% is paid.
- A completion date is agreed and the transaction is finalised.
- Our fee plus V.A.T. is payable on completion
Wednesday 4 February 2015
UK property buyers are flocking to secure their dream homes in Ireland, buoyed by a unprecedented strong pound with many rural homes still undervalued compared to the UK, according to Real Estate Alliance.
The strength of sterling has seen enquiries about Irish property sales to UK-based purchasers increase significantly in the past two months.
A survey of REA members shows that enquiries from the UK have increased by 13% on average to agents outside of Dublin in the past two months, with many areas seeing a 25% increase in calls.
In fact, one REA agent in Bantry is reporting a 50% increase in UK enquiries in the past eight weeks.
There has been a corresponding 25% annual increase in enquiries about Real Estate Alliance properties listed on top UK site rightmove.co.uk.
Now Irish property vendors are being given the chance to cash in on this mini-boom by registering for the Alliance’s upcoming London Property Exhibition.
REA are bringing thousands of properties to London, giving a host of UK buyers the chance to browse in comfort and talk to the experts on the ground.
The exhibition takes place in the Millennium Gloucester Hotel and Conference Centre in central London on Saturday March 21.
The exhibition will be a comprehensive one-stop shop for potential property purchasers with legal and financial experts joining a network of Real Estate Alliance agents from throughout Ireland, all with unique properties to show.
“The average UK home now costs €236,635 whereas in Ireland it is close to €180,000, and the strength of sterling is magnifying this,” said Real Estate Alliance CEO Philip Farrell.
“UK buyer interest is manifesting itself differently to the existing Irish market in a number of ways, with big surges in interest in many undervalued rural counties and also scenic and coastal locations.
“This presents many vendors with the opportunity of achieving better prices due to interest outside of the normal marketplace.
“Rural properties in the UK cost an average of €67,000 more than urban properties – quite the opposite of the Irish market.
“UK buyers are being priced out of rural properties in their own country, so for many their only chance of an ‘escape to the country’ is a move to our country.
“We are also seeing a marked upsurge in UK interest in large properties worth over €700,000 in commuter counties such as Meath and Kildare.
“We are also seeing interest from UK investors who are priced out of their own market and feel that they have reached the top of their curve and are looking for capital growth and yield in Ireland.”
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.
Further details on the REA London Property Exhibition, and a list of local agents, can be found on www.realestatealliance.ie or send an email to register for the event at firstname.lastname@example.org.
Available for interview:
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / email@example.com
For further information on exhibition contact:
Eimer O’Keefe, Real Estate Alliance
086 8249040 / firstname.lastname@example.org
Darren Hughes, MediaConsult 086 2937037 / email@example.com