The price of an average house in Dublin rose by
2.6% in the second quarter of this year with three-bed semis in the capital now
taking as little as three weeks to sell.
The average three-bed semi-detached in Dublin
city now costs €414,500, a rise of €10,000 (2.6%) over the last three months
and an increase of 14.1% over the past year, the Q2 REA Average House Price
Index has found.
And REA agents in areas of south Dublin such as
Tallaght, Clonskeagh and Dun Laoghaire are reporting that properties which took
seven weeks to sell a year ago, are now moving to sale agreed in 21 days.
The REA Average House Price Survey concentrates
on the actual sale price of Ireland's typical stock home, the three-bed semi,
giving an up-to-date picture of the property market in towns and cities
countrywide.
The average semi-detached house nationally now
costs €215,269, the Q2 REA Average House Price Survey has found – a rise of
2.5% on the Q1 figure of €209,944.
Overall, the average house price across the
country has risen by 11.2% over the past 12 months – in contrast to the 4.5%
increase registered to the full year to June 2016.
While new building is still in its infancy, new
developments on sale in small pockets of the country have had an impact on the
price and demand for second-hand properties locally.
“Agents have been
reporting that where there are new homes available, the price of second-hand
properties has been under pressure,” said REA spokesperson Healy Hynes.
“Most of our national housing stock is over a decade old, and house
purchasers – especially first-time buyers – will opt for new builds at a higher
spec, even if there is a marked difference in price.
“Our agents are also reporting that both purchasers and three-bed semi
vendors are looking for larger homes, which is having an adverse effect on the
supply chain, with the result that time taken to sell is now four weeks on
average in Dublin and the major cities, and as low as three in some parts of
the capital.
The commuter counties Louth, Meath, Kildare, Wicklow,
Carlow and Laois continued to rebound after a relatively static end to 2016 and
saw an increase of 2.6% in the quarter, with the average
house now selling for €223,267.
Prices in the major cities of Cork, Galway, Limerick and Waterford rose
by 1.9% in Q2 and 9% on the year, the survey found.
The average three-bed semi now costs €311,000 in Cork (+2%), €245,000 in Galway
(+2.1%) and €185,000 in Limerick (+3.9%) and Waterford €190,000 (0%) with
first-time buyers opting for new homes as the reason for static pricing in the
latter location.
The biggest percentage increases over the past
three months came in the country’s smaller rural towns situated outside of
Dublin, the commuter belt and the major cities.
Prices here rose by an average of 2.8% over the
quarter, with a three-bed semi now costing €138,183 on average – a rise of
12.3% over the past year.
However, uncertainty over Brexit has resulted in a significant downturn
in turnover for agents in some border areas.
Prices for three bed semis have remained at €85,000 in South Donegal for
the past three quarters, but this masks a huge drop off in business from the
North according to REA McElhinney in Bundoran.
“There is an overall hit to confidence
and to people’s willingness to make a major financial commitment to property
while there is uncertainty over the border,” said Michael McElhinney
Ends
Available for interview:
Healy Hynes, REA spokesperson and auctioneer
healy@hynes.ie
087 263 2295
Media information: Darren Hughes, 086 293 7037,
Darren@mediaconsult.ie
