The price of an average three bedroom semi
detached house in the Fingal area has declined by 1.97% in the first three
months of 2015, with an overall 2.28% increase in prices in the last six
months, according to a national survey carried out by Real Estate Alliance.
In Skerries prices have dropped by €20,000
in three months, with the average semi detached home now costing €290,000, with
REA agents noting the impact of the Central bank’s new deposit rules and more
cautious buyers.
While demand is high for properties close
to the €220,000 threshold, the Central Bank’s restrictions on deposit
requirements have had an immediate effect on the capital’s housing market, with
lack of suitable supply another major factor.
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 ten weeks to sell the average
house in North Dublin, a figure that has remained unchanged since September
2014.
REA agent Dermot Grimes says the Central
Bank’s new deposit rules have definitely had an impact in the market, but
buyers are also happy to take their time.
“Prices have come back to mid-2014 levels.
The market has stagnated due to the immediate impact of the new lending
restrictions, allied with the emergence of a more cautious buyer who is
prepared to wait for the right house,” said Mr Grimes.
“The market has softened in the past few
weeks with most of enquiries for properties under €200,000 and activity for
large properties has become quiet,” said Hugh Cumisky of REA Cumisky,
Balbriggan, where prices have increased by €5,000 to an average of €205,000.
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:
Hugh Cumisky, REA Cumisky, Balbriggan, 087
2484489
PG Grimes, REA Grimes, Skerries, 087
2258678
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
