The price of an average three bedroom semi
detached house in Limerick has risen by 16.67% in the past year, but the market
has remained flat in the first three months of 2015 with suitable supply the
major issue, according to a national survey carried out by Real Estate
Alliance.
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.
It now takes four weeks to sell the average
house in Limerick, down from eight weeks in September 2014, with the average
price now €140,000.
“While we have experienced more viewings
and enquiries in the marketplace from December 2014 to March 2015, the lack of
supply has diminished our ability to increase sales levels,” said Michael
O’Connor from REA O’Connor Murphy in Limerick city.
“However, within the last two weeks we have
seen a dramatic change in this and expect an increase in prices in the region
of 10% for the coming quarter. In general, there is a drastic improvement in
the market and we are positive for the remainder of 2015.”
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.
“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.“
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.
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.
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%.
Ends
Available for interview:
Michael O’Connor, REA O’Connor Murphy, 087
2597034
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / philip@realestatealliance.ie
For further information on exhibition
contact:
Eimer O’Keefe, Real Estate Alliance
086 8249040 / eimer@realestatealliance.ie
Media information:
Darren Hughes, MediaConsult 086 2937037 /
darren@mediaconsult.ie
