The rise in the price of an average three
bedroom semi detached house in Dublin city has slowed to 0.66% in the first
three months of 2015, according to a national survey carried out by Real Estate
Alliance, with one area experiencing a fall of -1.79%.
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.
The average three-bed semi in Dublin City
now costs €381,667, with Lucan and Dublin west in particular experiencing a
fall of -1.79% or €5,000 on average.
It now takes four weeks to sell the average
house in Dublin city, a figure that increased from three weeks since September
2014.
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 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.
“Following the Q4 slowdown, Dublin is now
feeling the joint effects of the abolition of the Capital Gains Incentive and
the and the introduction of increased deposit requirements by the Central
Bank,” said Philip Farrell.
“However, in areas of the capital where
average values are below the €220,000 threshold, strong demand still exists
from both first time buyers and investors.”
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.
“The market for three beds and smaller is
strong but taking a week longer to sell than last September,” said Barry
McDonald of REA McDonald, Lucan.
“However, there is definitely less demand
for anything above 400k and we are seeing signs of better supply levels coming
with building sites in full swing in various places and new build schemes
hitting the market.
“There is a still a little amount of
uncertainty out in the market place, but new regulations don’t seem to have had
an effect on overall demand.”
Paul Grimes of REA Grimes Dublin city
centre said: “There is a massive shortage of stock in Dublin and demand is
still very high in the more sought-after areas.
“Three and four bed semis located near good
schools and near rail stations are particularly in demand. We are seeing a
shortage of property to let with no new builds taking place. “
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:
Paul Grimes, REA Grimes, 087 2258678
Barry McDonald, REA McDonald, Lucan, 086
387 3800
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
