The price of an average three bedroom semi detached house in Tipperary has risen by 6.04% to €120,625 in the past year, but the market has remained flat in the first three months of 2015, 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 six weeks to sell the average house in Newport, compared to eight weeks in Clonmel and Nenagh, and 16 weeks in Roscrea.
“At present we are finding there is very limited suitable stock in the €100,000 - €150,000 first-time buyer market,” said John Stokes, from REA Stokes and Quirke in Clonmel.
“There is huge appetite for new homes in this area, but no supply and no incentive for builders to build with all the restrictions and costs of building.”
“The market has been slow to restart after the Christmas but there has been a huge increase in the number of viewings since the middle of March,” said Eoin Dillon from REA Dillon in Nenagh.
“Many of those are first-time buyers whose loan offer will expire if not drawn down before the middle of the year and they can also avoid the 20% requirement if they purchase before that time.”
“Investors in Roscrea are are slow to put houses on the market until it rises more, and there is a strong rental market,” said Seamus Browne from REA Browne.
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%.
Available for interview:
Eoin Dillon, REA Dillon, Nenagh, 087 2052716
Seamus Browne, REA Seamus Browne, Roscrea, 087 249 9570
James Lee, REA John Lee, Newport, 086 2351221
John Stokes, REA Stokes & Quirke, Clonmel, 086 8213777
Philip Farrell, CEO Real Estate Alliance
086 250 3515 / firstname.lastname@example.org
For further information on exhibition contact:
Eimer O’Keefe, Real Estate Alliance
086 8249040 / email@example.com
Darren Hughes, MediaConsult 086 2937037 / firstname.lastname@example.org