The price of an average three bedroom semi-detached
house in Waterford city has risen 5% in the first three months of 2015 to
€152,750, with an overall increase of 10.33% in the past six months, according
to a national survey carried out by Real Estate Alliance.
By comparison, prices for three bed semis
in Dungarvan have stabilised throughout the past six months at an average of
€135,000.
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 eight weeks to sell the
average house in Dungarvan, compared to ten weeks in September2014, while it
takes just four weeks to sell a house in Waterford city.
“The market in the last quarter of 2014 was
very buoyant due to the Capital Gains Tax incentive expiring and the new rules with
regard to mortgage lending,” said Des O’Shea of REA O’Shea O’Toole in
Waterford.
“There is a scarcity of suitable three-bed
semis and competitive bidding is now the norm.”
“In the more saleable areas stock is the
biggest issue and correctly priced properties are getting a good number of viewings,” said Eamonn Spratt of REA Spratt in Dungarvan.
“It is becoming more noticeable that
overpriced properties are not receiving any interest.”
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:
Des O’Shea, REA O’Shea O’Toole, Waterford, 087
2599976
Eamonn Spratt, REA Spratt, Dungarvan, 086
2531277
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
