The price of an average three bedroom semi
detached house in Co Donegal has risen by 3.45% to €75,000 in the first three
months of 2015, with an overall rise of 5.63% in the past 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.
It now takes seven weeks to sell the
average house in Bundoran, compared to 12 weeks in September 2014, where the
rise in sterling has been a contributory factor in a 7.69% rise in prices in
the first three months of the year to an average of €70,000.
“The affordable end of the market is
extremely busy with strong demand for homes priced up to €100,000,” said
Michael McElhinney from REA McElhinney in Bundoran.
“We see a shortage of supply at this end
but the market remains quite buoyant and this is reflecting the sterling
exchange rate.”
According to Paul McElhinney from REA
McElhinney in Milford: “There is still strong interest in three bed semis, with
our average price at €80,000, and although supply has eased up, there is still
a steady stream and demand has kept pace.
“As a result prices are stabilised rather
than rising although over the course of the year we may see a slight increase.”
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%).
Ends
Available for interview:
Michael McElhinney, REA McElhinney
Bundoran, 087 2598966
Paul McElhinney, REA McElhinney Milford,
086 122 9335
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
