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%.
Ends
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 / 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
