Monday 25 March 2019

REA Average House Price Survey Q1 2019

Property prices in Dublin city have decreased by an average of €7,500 in the first three months of the year as mortgage finance rules bite, the Q1 REA Average House Price Index has found.
The price of a three-bed semi-detached house in Dublin city has fallen by -1.7% since the end of December, wiping out the average €7,000 gains in value experienced throughout 2018.

The price of the average three-bed semi-detached house in the capital’s postcode districts now stands at €437,500.
“Time taken to reach sale agreed in Dublin is now eight weeks – double that of a year ago –and reflects the difficulties that people are experiencing in obtaining a mortgage,” said REA spokesperson Barry McDonald.
“We are seeing an appreciable drop in people attaining mortgage approval – particularly for properties above €350,000 – which is creating a ceiling that is stifling the market.

“There are essentially two markets – people who have to buy and people who can choose to move.
“The first set of buyers are purchasing properties under €350,000, but the latter are either cautious about values and interest rates post-Brexit and are adopting a wait-and-see approach, or cannot secure mortgage approval.
“There is also no doubt that Brexit is causing uncertainty in the higher end of the market."
“Our agents also report that buyers have been less location specific and more driven by price in Dublin and surrounding areas in the first quarter.”

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 second-hand property market in towns and cities countrywide to the close of last week.
The average semi-detached house nationally now costs €235,898, the Q1 REA Average House Price Survey has found – a fall of -0.16% on the Q4 2018 figure of €236,287.
Overall, the average house price across the country rose by 2.9% over the past year – a decrease on the 4.6% recorded to December and indicating that the market is continuing to steady after a 9.1% overall annual rise to the end of Q1 in 2018.
Prices also fell slightly by -0.3% in the commuter counties in the last three months – an annual rise of 2.7% – with the average house now selling for €248,750.
While there were rises in Kildare (1.1% to €276,500), prices fell in Wicklow (-0.7% to €289,000) and Louth (-3.6% to €202,500).
Prices were static in the country’s major cities outside Dublin with agents in Cork, Galway, Limerick and Waterford all reporting no price movements in the opening quarter, but an annual increase of 3.6% to €252,500.
The highest annual increases (6.3%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €9,400 in the past year and 1.1% in the past three months to €159,433.
Barry McDonald, REA spokesperson, 086 387 3800
Media information: Darren Hughes,, 086 293 7037

Sunday 24 March 2019

REA Survey on the UK market

Over 74% of estate agents have seen an increase in enquiries from the UK over the past year, a nationwide Brexit property survey carried out by the Real Estate Alliance group has found.

30% of all enquiries from UK buyers are now directly related to Brexit – up 13% on the previous survey carried out six months ago – with 14% of subsequent sales directly due to jobs moving to Ireland.

Agents reported that almost 60% of enquiries were from buyers in London or the South East of England – up from 40% six months ago, and indicative of a shifting jobs market.

And while cross-border residential activity in Border counties and holiday home sales are down, the number of agents reporting a decrease in enquiries has fallen from 21% to 7% in six months.

Overall enquiries are up by an average of 23% among those experiencing an uplift, while those reporting a decrease are seeing calls down by 20%.

Sales to UK buyers have increased by 12% on average over the past year, according to the REA survey.

“UK buyers make up 10% of overall enquiries and 6% of sales in the Irish market, with our agents reporting an average of 4.3 sales to UK buyers last year,” said REA spokesperson Barry McDonald.

“30% of enquiries to REA agents cite Brexit as a direct reason for clients moving to Ireland while 21% are coming to live and work in Ireland for reasons unrelated to Brexit.

“Of those, 15% intend to commute to work in the UK, 27% will be working from home for UK companies and 58% will now be working in Ireland – the latter figure an increase of 12% on the previous survey.”

The survey also shows that 23% are buying for eventual or immediate retirement, 8% are investors, 8% are looking for a change in lifestyle, and 9% are purchasing holiday homes – a market that has been hit by the fall in sterling value and remains unchanged over the past six months.

The typical UK buyer is looking for a rural property (54%) with 66% of people looking for a standalone development.

The biggest percentage of sales to UK buyers (22%) is in the over €500k category, while the average at all €50k stages above the average house price in the State (€236,287) is between 15-17% with 16% between €300k-€500k (down 6% from the previous survey).

“25% of UK buyers now have no connection with Ireland, which would be a change in historical patterns of enquiries and sales,” said McDonald.

Over 6,000 UK property buyers are being offered the chance to view thousands of Irish properties, and to talk to the people selling them, when REA exhibit at the London Property Show on April 12-13 at ExCel London.

"Brexit is driving an upswing in commercial property investment on the vital M1 north-south corridor according to both of our agents in Co Louth, with REA Gunne Property in Dundalk reporting a doubling of interest in the past 12 months.

"In the residential market, most areas are reporting increased calls from the UK but uncertainty on a local level is slowing the number of properties coming to market.

"In my own practice in Lucan we have had a 20% increase in enquiries, but many local buyers are adopting a wait and see approach in regard to values.

"This uncertainty is having a multitude of effects in the same county in many cases.

"Our agents in Roscrea, REA Seamus Browne, have seen a doubling of business from the UK this year.

"However, in Clonmel, REA Stokes and Quirke have sold five houses this year for people in rural areas heading back to the UK - with another two on the market as people take advantage of the drop in value of Sterling.

"In Kilkenny, REA Grace in Callan (+15%) are getting a lot of enquiries from the UK with people having already made up their mind that they are moving to Ireland.

"The holiday home market in border areas has slowed due to reticence on behalf of Northern buyers.

"In other traditional areas such as West Cork, our agents are reporting that potential UK buyers are increasingly looking at the rental market, which is being hit by a shortage of available properties.

"Our agent in Limerick REA O’Connor Murphy is reporting that interest is still strong in the once-off property in the west of Ireland, which is unlikely to be driven by Brexit job movement."

Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 55 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.


Media information: Darren Hughes,, 086 293 7037