The price of an average three bedroom semi detached house in Louth has risen by 1.72% to €147,500 in the first three months of 2015, with an overall increase of 5.36% in the last six months, 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.
Drogheda’s average house prices have increased by 2.94% to €175,000 in the first three months of the year, while Dundalk’s prices have remained static at €120,000, up 9% since last September.
It now takes only two weeks to sell the average semi-detached house in Dundalk, compared to eight weeks in Drogheda.
“The market is very active at present with first-time buyers, investors and second-time buyers looking to downsize,” said Michael Gunne from REA Gunne Properties in Dundalk.
“Currently there is a shortage of three and four bed town properties which generates a great interest in those properties listed for sale. As a result the short supply versus the demand is creating intense bidding situations.”
Likewise, Darina Collins from REA O’Brien Collins says under supply is still an ongoing problem in Drogheda.
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:
Darina Collins, REA O’Brien Collins, Drogheda, 086 3847542
Michael Gunne, REA Gunne Properties, Dundalk, 086 389 0009
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