REA Munster & Connacht Auction a success

120 people registered for the REA Munster & Connacht Auction held at the Limerick Strand Hotel on Monday, 12^th September. The auction offered a selection of properties throughout Munster & Connacht with a mix of apartments, detached, semi-detached and terraced houses going under the hammer. The well attended Auction experienced strong bidding with Sales prices exceeding Reserves by an average of 10%. Only two Lots remained unsold at the auction however, these properties are presently under negotiation and are expected to sell in the coming days.

We are now accepting Lot Entries for our next REA Munster & Connacht Auction being held on Thursday, 3^rd November 2016 in the Limerick Strand Hotel. All information on this Auction will be on our website www.reaoconnormurphy.ie within the coming days

REA Q2 Average Property House Price Index

A nationwide supply shortage has fuelled a rise of over 2% in the price of the average house in the last three months, according to a national survey carried out by Real Estate Alliance.

The majority of counties in the State recorded price increases in Quarter Two this year, the latest Real Estate Alliance Average House Price Survey has found.

However, it is the lack of supply of suitable properties in a scarce market that has caused these rises, exacerbated by the effect of would-be commuters moving ever further from Dublin to acquire affordable homes.

“We are seeing firms who are in business for 50 years who have never experienced such a low level of supply, and this is responsible for causing sharp increases in prices in some areas over the past three months,” said REA Chairman Michael O’Connor.

The average three bed semi nationally now costs €195,361, an increase of over €4,000 (+2.18%) since the end of March. This is a rise of 4.49% against the same time last year.

The REA Average House Price Survey concentrates on the 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 to the end of Q2 this week.

While prices in Dublin city and county grew by +1.4% to €363,333 since March, competition for scarce housing below the Central Bank’s €220,000 deposit limit in both the inner and outer commuter areas is fuelling an inflationary market.

Prices in commuter counties, Cork and Galway have risen by €5,000 to €214,588 (+2.4%) while those in the rest of the country have increased by over €3,000 to €128,768 (+2.75%).

Three-bed semi prices in Kilkenny city rose by €20,000 or 12.5% in the past three months, a figure that is entirely driven by record low supply, according to Michael Boyd of REA Boyds.

"Our analysis of the Price Register tells us that there are 15 less units per month selling in the county than this time last year – and that this is the lowest level since these records began,” he said.

“We are finding that demand is strong, mainly from loan-approved returned emigrants or Eastern European buyers.

“We desperately need new building to start, especially as prices for quality stock are now well into viable levels for builders to commence."

As the flight to another of the outer commuter counties continues, prices in Laois have risen by €10,000 (+8%) in the past three months.

Prices in Kildare (€242,500) have remained static in the four main towns, due to a low supply of suitable housing stock, combined with a relatively higher price to neighbouring counties.

In contrast, Meath has now broken the €200k barrier (€201,250) following a 3.21% growth in three months, as Dublin–based commuters move out to houses they can afford under the Central Bank’s deposit guidelines.

In Wicklow, prices in Blessington have risen from €240,000 to €265,000 in a three-month period, a rise of 10.42%, with agent REA Murphys advising that there is a bubble in the three bed semi market.

Prices in the county as a whole have gone up by 4.44% to €235,000 over the past three months.

Louth continues to act as a microcosm of commuters travelling further in search of affordable homes with Dundalk enjoying a rise of 11.1% in three months (€150,000) while pricier homes in Drogheda (€203,000) have risen by just over the national average at 2.78%.

“There is no doubt that the major factors affecting the Irish property market at the moment are supply of housing, the Central Bank restrictions, the banks’ mortgage lending policies and high rents,” said REA Chairman Michael O’Connor.

“We have seen each of these influence the market to different degrees over the past 15 months.

“The Central Bank restrictions were brought in to calm a market bubble but we are now seeing the lack of supply very definitely fueling house price inflation on its own.

“We now need to address the roadblocks in the way of building new suitable family homes.

“We feel that the State ultimately needs to implement a 50% vat reduction on new homes, backed up by rebate schemes on local development charges on a nationwide basis.

“Nama need to accelerate sales of land on the open market as well as selling through loan sales.

“In conjunction, there is a need to fast track planning within the correct zoning for urban land bought within the next two years.”

In North County Dublin, the market has stagnated due to a lack of new builds while south County Dublin has grown by 2.19% to €350,000 and Dublin city only by 1.4% to €363,333.

“Where property is moving in Dublin it is due to supply fueling rises or investors looking to exit the market, even in spite of increasing rents,” said Michael O’Connor.



Ends

Available for interview:
Barry McDonald, REA McDonald, Lucan, 086 387 3800, 01 6280625, barry@reamcdonald.ie
Anthony McGee, REA McGee, Tallaght, 087 2799332, 01 4057700, Anthony@reamcgee.ie

Media information: Darren Hughes, 086 293 7037, Darren@mediaconsult.ie

Average age of first-time buyer rises to 34

The average age of the first-time buyer in Ireland has risen by five years to 34 over the past decade, with a leading estate agency group predicting that home ownership may soon be a pipedream for those in their twenties.

In 2006 the average first-time buyer in Ireland was approximately 29 years old, but, according REA, this figure has increased by 17% and is still rising due to a combination of circumstances.

The Alliance’s index of first-time buyers reports that the age profile has risen from average of 33 in the past 12 months, with a combination of factors are barring the entry of young people into the housing market.

Real Estate Alliance (REA) agents around Ireland are reporting that first-time buyers in their twenties and early thirties are now mainly absent from the market for properties priced over €160,000.

“A definite two-tier system has emerged over the past year nationwide, with €160,000 emerging as the breaking point for interest from buyers in that age group – ruling out most properties in Dublin,” said REA Chairman Michael O’Connor.

Another huge factor in the first-time buyer market has been the recent strength of buyers from outside Ireland who have been typically living and working here for over a decade now putting down roots and buying houses.

“In areas such as Carlow, REA agents are reporting that 30% of first-time buyers are now from Eastern Europe, a percentage that has grown rapidly over the past two years,” said Mr O’Connor.

“The biggest factor influencing the market this year has been the Central Bank deposit rules which have created a two-tier system, ruling out home ownership for many young people due to over-restrictive guidelines,” said REA Chairman Michael O’Connor.

“The introduction of the Central Bank’s requirements, combined with higher rents, has made it increasingly difficult for young people to save deposits, especially in Dublin.

“House ownership is now off the table for many couples earning average salaries, with their only hope of purchase now coming from an injection of outside help, usually from close relatives.

“From a Dublin price perspective, the rules don’t make sense, with the combination of the deposit rates and the multiplier falling far short of our average three-bed semi price in Dublin city and county of €334,000.

“A couple on a combined average industrial wage income of €74,000 can borrow 3.5 times their income, making a total of €259,000.

“Many of them will struggle to raise a deposit of €35,000, but if they do, it gives gives them a maximum buying power of €294,000.

“Those figures, and the level of savings required, go a long way to explaining why the average age of our first-time buyer is being pushed upwards.

“Many potential purchasers are in rented accommodation and are having difficulty in paying high rents and saving for a deposit for houses that they would otherwise comfortably afford.

“While we welcomed the introduction of guidelines from the Central Bank, we feel that they are not reflecting the reality of the market.

“For example, the mortgage multiplier is 4.5 times income in the UK and this is something that we need to revisit under current rules.

“We also need the Central bank to acknowledge that the market for first-time buyers is being stalled by second-time buyers being unable to move out of their starter homes due to the restrictions of the Central Bank rules.

“They need the same 10% deposit derogation as first-time buyers and the notional €220,000 limit needs to be raised to reflect the reality in the area of most need – Dublin.”

Interestingly, the age may be lowering the further out the commuter belt you go as REA Coonans in Maynooth are reporting that their average first-time buyer is in their early thirties.

REA agents nationwide are noting the rise in buyers from outside Ireland who have been typically living and working here for over a decade now putting down roots and buying houses.

“In some Dublin areas, non-national purchasers are forming a large part of the first-time market, providing stimulus at a time when there is little movement in that sector,” said Anthony McGee of REA McGee, who are based in Tallaght.

“Although it is cheaper to buy than rent, large numbers of people are stuck in long-term high-cost renting which is effectively ruling them out of ever saving a deposit under the current rules.”

The availability of mortgage finance is cited as an issue country-wide with
Healy Hynes of REA Hynes in Athlone reporting that the vast majority of loan approvals are for under €100,000.

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.

Ends


Available for interview:
Michael O’Connor, REA chairman and auctioneer.
087 259 7034 michael@reaoconnormurphy.ie

Media enquiries:

Agents View - Sunday Independent

If you build it, they will come …..
With apologies to Kevin Costner – you have to build them, the would-be occupiers are already here.
There is no single solution to meeting the housing needs of the population – just a series of joined-up actions that are readily achievable if the will is there.
What we need now is for the three main players in the game – The Government, the Central Bank and Nama, to put their heads together and agree a realistic stimulus policy to allow movement in the entry section of the market.
This needs to be the direct opposite of the present “don’t just do something, stand there” approach.
Nama need to accelerate sales of land on the open market as well as selling through loan sales.
In conjunction, there is a need to fast track planning within the correct zoning for urban land bought within the next two years.
This combination alone will allow medium-sized developers to purchase land and build – and remove the risk of sites going into further cold storage.
The SCSI have estimated the cost of delivery (including margin) of a three-bed semi in Dublin at €330,493 – almost equal to the €334,000 average cost of the same home in the recent REA Q1 Average House Price Survey.
A couple on a combined average industrial wage income of €74,000 can borrow 3.5 times their income, meaning a total of €259,000.
Adding a deposit of €35,000, gives them a maximum buying power of €294,000.
So how do you bridge the gap between delivery cost and average buying power?
Firstly, we need to revisit the multiplier and raise it to 4.5 times income, as it is in the UK.
Secondly, we need to acknowledge that the market is being stalled by second-time buyers being unable to move out of their starter homes due to the restrictions of the Central Bank rules.
They need the same 10% deposit derogation as first-time buyers and the notional €220,000 limit needs to be raised to reflect the reality in the area of most need – Dublin.
Lastly, the argument against reducing Vat on new builds is that it will reduce income to the exchequer.
Building and selling 100 houses at a 50% Vat reduction raises a lot more income than none at the full rate.
As Mr Costner might have said: If you build it, they will buy. If you don’t, we are looking at a field of nightmares.

Michael O’Connor – REA O’Connor Murphy, Limerick and Chairman of Real Estate Alliance
www.realestatealliance.ie

Q1 REA Average House Price Survey

A new wave of house buyers are prepared to commute for over an hour to secure properties at the right price, according to a national survey carried out by Real Estate Alliance.

The Q1 REA Average House Price Survey has revealed price rises in outer commuter ring locations such as Laois and Offaly are being driven by Dublin-based first-time buyers being forced further out from the capital by the Central Bank’s deposit rules.

REA also report seeing a decrease in the amount of first-time buyers between the ages of 25-40 attending viewings in the Dublin housing market in the first quarter of 2016.

The REA Average House Price Survey concentrates on the 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 three-bed semi nationally now costs €191,194, a rise of €2,824 (1.5%) on the figure to the end of December.

The average price of a three-bed semi in Dublin City and County has risen by 0.6% from €332,000 to €334,000 in the first three months of the year.

This activity is driven in part by new building activity in the north of the county and pockets of south Dublin which have seen the return of the cash buyer to the market.

The proportion of cash buyers in the Dublin market has risen for the first time in two years, from 33% to 36% over the past three months, with some areas such as Dublin 6 and Dun Laoghaire registering a 25% increase in cash purchasers over the past three months.

The Central Bank’s deposit rules and the lack of suitable supply are continuing to stagnate the market for mortgage buyers in the capital and commuter areas.

While prices have risen slightly by €2,706 (+1.31%) to €209,559 in the commuter counties and main cities such as Cork and Galway, these rises are confined to the few towns that have new developments on the market.

The biggest growth has been in towns in the rest of the country where prices have risen by 9.58% in the past year, and 2.59% since December, with the average three bed semi increasing from €122,161 to €125,321.

However, REA agents around the country state that many local rises are now being caused by lack of stock driving up prices.

“We are seeing a marked absence of the 25-40 year olds at viewings in the capital over the past few months as, under the current Central Bank restrictions, they are finding it impossible to raise the deposits needed to purchase houses over the €220,000 limit,” said REA chairman Michael O’Connor.

“Conversely, we are seeing growth in commuter interest in counties previously considered at the edge of the daily travelling limits such as Laois (€125,000 +4.17%) and Offaly (€140,000 +3.7%), simply because the price is right.

“Louth is the perfect example of this trend in commuter migration. Drogheda prices remained static at €197,500 in Q1 while commuter interest caused prices to rise by €10,000 to €135,000 in Dundalk, which is 35km further away from Dublin but over €60,000 cheaper on average.

“Although supply is extremely limited, suitable properties are now being bought in these areas by buyers who are prepared to travel over an hour to work in the capital.

“Lack of supply of suitable housing is the paramount issue nationwide, and while we have had rises in many areas, they are primarily driven by buyer competition for low supply.”

With prices rising by 5.1%, and viewings up substantially, Limerick was Ireland’s fastest growing city in Q1, with three bed semis increasing by €8,000 to their current level of €165,000.

Growth continued in Cork city (+1.75%) and Waterford (+1.61%), while the market in Galway remained static in Q1, with no new developments expected in the Connacht capital until 2017.

Ends

Available for interview:

Michael O’Connor, REA chairman and auctioneer.

087 259 7034 michael@reaoconnormurphy.ie

Media enquiries:

Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037

REA Property Expo huge success in NY

The first Irish property exhibition held in New York City has been hailed as a huge success by organisers Real Estate Alliance, who met with 425 potential buyers last weekend.

REA members were delighted with the business done at the exhibition in Manhattan's Fitzpatrick Hotel, with 90 customers planning to set up arrangements with REA agents to talk further over the next two months and 25 inspections trips already planned for specific properties.

32% of the attendees were Irish families looking to return home, 19% were retirees looking to downsize, and 17% were young Irish people returning to work.

5% of attendees were searching for a holiday home and another 3% were keen to buy a second home with ties to family in Ireland.

A survey of attendees also found that 16% were investors while 8% were US-based people who have homes in Ireland and were looking for them to be either sold or managed.

70% of those questioned at the ground-breaking exhibition aim to buy property in Ireland within the next two years.

“Our agents were really pleased to meet with so many potential buyers and they expect those conversations to very quickly convert into sales,” said REA chairman Michael O’Connor.

“Those present showed interest in a vast spectrum of price ranges as the attendees came from a number of buyer groups.

“Many of those US buyers have already made plans to travel to Ireland to view their potential properties, with a number of Irish-
American buyers due to visit for the centenary celebrations over Easter and the summer break.”

Almost one in six overseas enquiries about Irish property are now coming from the United States, according to a nationwide REA survey.

The established survey of REA members shows that enquiries from the US increased from almost zero to 16% in 2015. And this is signaling the first major return of emigrants who feel that the time is right to move back to Ireland.

“The average house price in the US in November 2015 was $374,900 (€341,656), compared to our Average House Price survey national value of $210,094 (€188,370), so there is obvious value for American buyers in Ireland,” said Michael O’Connor.

“Many young Irish families looking to move home mentioned the cost of education and healthcare in the US as a major factor for returning to Ireland,” said Michael O’Connor.

“As children grow towards college age, parents may be facing costs of approximately $60,000 per year, with even secondary education costing a minimum of $15,000 per annum.

“The investment sector proved stronger than we would have anticipated, with 16% of those attending seeking to purchase a buy-to-let property in Ireland while 8% were US Citizens with properties in Ireland who may have inherited them and require agents to manage the properties or sell them.

“The majority of attendees were interested in buying a house with just 20% aiming to purchase an apartment.

“In the main, our young Irish people looking to return for work are seeking out properties in cities, while couples with children are looking for properties on a nationwide basis, close to their family.”

The exhibition was also attended by 20 US-based realtors with the aim of introducing buyers to Irish agents, while there was also significant media interest in the US.

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.

Ends

Available for interview:
Michael O’Connor, REA chairman and auctioneer +353 (0) 87 259 7034 michael@reaoconnormurphy.ie

Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037

REA Munster Auction Results Spring 2016

REA Munster Auction Results

Continuing the positive trend for purchasing properties at auction, 137 people registered for the first REA Munster Auction of 2016 which was held at the Limerick Strand Hotel on Tuesday last, 1st March. Only one Lot remained unsold when the auction ended however this property is now under negotiation and is expected to sell in the coming days. Sales prices on the day exceeded AMV’s by an average of 17% with particular interest in 4 terraced houses in Waterford which were sold as one Lot and achieved €88,000 over the AMV. There were multiple bidders on each of the properties indicating strong demand in the Munster region. 


The next REA Munster Auction is taking place on Thursday,  21^st April in the Limerick Strand Hotel. Details will be posted online in the coming days.

REA present properties in New York 3rd March

A strong dollar and the lure of a resurgent economy for emigrants has seen US property buyers flocking to secure homes and investment properties in Ireland in recent months, a new survey has found.

And for the first time, US property buyers are being offered the chance to view thousands of Irish properties, and to talk to the people selling them, at the Real Estate Alliance Irish Property Exhibition in New York.

Real Estate Alliance (REA) are giving interested buyers the chance to view and talk to local Irish agents in comfort at the Fitzpatrick Hotel, Grand Central Manhattan on Thursday March 3 from 5-8pm.

Almost one in six overseas enquiries about Irish property are now coming from the United States, according to a nationwide REA survey.

The established survey of REA members shows that enquiries from the US increased from almost zero to 16% in 2015.

And this is signalling the first major return of emigrants who feel that the time is right to move back to Ireland.

“While there has always been interest from the US market, this has increased markedly in a year that saw a 22% increase in overseas enquiries about Irish property,” said REA Chairman Michael O’Connor.

“The average house price in the US in November 2015 was $374,900 (€341,656), compared to our Average House Price survey national value of $210,094 €188,370, so there is obvious value for American buyers in Ireland.

“Overall, calls from overseas buyers represented 19% of all enquiries received by REA agents in 2015 and 16% of total sales.

“49% of our enquiries came from the UK, 8% from continental Europe, 10% from Australia, but the real surge in new interest came from the US.”

To register for the property exhibition, go to www.realestatealliance.ie or email newyork@realestatealliance.ie.

Fitzpatrick Grand Central - 141 East 44th Street at Lexington Avenue New York, NY 10017

-          3^rd March 5-8pm

Available for interview:

Michael O’Connor, REA chairman and auctioneer 0353 87 259 7034 michael@reaoconnormurphy.ie

Media enquiries:

Darren Hughes, MediaConsult, darren@mediaconsult.ie, 00353 86 293 7037

REA Predictions for 2016

The effects of the Central Bank’s restrictions of mortgage deposit lending has caused some estate agents in Dublin to predict another year of price falls in 2016.

A survey carried out for the Irish Independent by the Real Estate Alliance Group has found that agents in Dublin expect prices to rise by just 0.3% on average in 2016.

However, some agents in South County Dublin are predicting that prices will fall a further -3.5% next year, after a 12 month period which saw -9.3% wiped off the value of the average house in the area.

In the Dublin city area, some agents remain just as sceptical of the coming year as they feel that without Government intervention rising rents, a lack of suitable supply and the punitive mortgage deposit rules for second time buyers will combine to see prices drop by -5% in areas such as Tallaght and Rathfarnham.

Overall, agents in the Dublin city area are predicting rises of just 1.5% over the next 12 months.

This is in comparison to the nationwide average expectation of a 5.6 per cent rise in property prices next year.

While many Dublin agents reported zero growth in the fourth quarter of 2015, Rathcoole (-3.33%), Lucan (-1.82%) and Tallaght (-2.5%) suffered drops.

The Central Bank rules remain the key driver for growth or stagnation, especially in the Dublin area, with one agent predicting a rise of 3% if the rules are amended and a challenging market if they are not.

 And as investors continue to exit the rental market, agents have predicted that rents will rise by 7-10% in 2016, further excluding people from saving deposits to get on the housing ladder.

Agents in the three main cities outside Dublin are more optimistic, with rises of 10% predicted in Limerick, 7% in Cork city and 3% in Galway.

The outlook for the commuter belt is ruled completely by the anticipation of new housing coming on stream in 2016.

Where this is the case, agents are optimistic. Where there is nothing in the pipeline, many feel that growth will be close to zero due to the lack of supply of suitable housing.

Agents in Meath have predicted just a 1.5% rise on average, after 3.72% average increases in 2015, with Navan and Ashbourne both expected to experience zero growth in the coming year.

“Our agents in Meath are predicting that unless there are government changes there will be no improvements next year,” said REA Chairman Michael O’Connor.

“They are seeing at first hand how difficult it is for developers to access finance and also build at a profit.

“If this is not addressed through a combination of measures, then we will see a situation where we will be left with little or no supply in crucial areas.”

Agents in Kildare endured price falls in Q4, mainly driven by supply issues, and after a year that finished flat on 2014, are predicting a maximum of 3.5% growth in 2016.

“We are seeing predicted stagnation in towns like Newbridge, which are still affordable commuter areas with average prices at €195,000, due to the fact that there are no new estates coming on stream,” said Michael O’Connor.

“Where there is any new building taking place, there are suitable properties to purchase or there is value for the first-time buyer, then agents’ expectations are higher.

“Around the country, we are seeing property markets in many areas making their first steps to recovery, albeit from a low base.

“And this recent growth is reflected in the confidence of their local agents with double digit rises predicted in Leitrim (11%), Monaghan (10%), Roscommon (10%) and Donegal (10%).”

Ends

Real Estate Alliance Property Show – New York 3rd of MARCH 2016

Almost one in six overseas enquiries about Irish property are now coming from the United States, a national estate agents survey has found.

US property buyers are flocking to secure homes and investment properties in Ireland, buoyed by a strong dollar and the lure of a resurgent economy for emigrants, the Real Estate Alliance nationwide survey has found.

A survey of REA members shows that enquiries from the US increased from almost zero to 16% in 2015.

And this could signal the first major return of emigrants who feel that the time is right to move back to Ireland.

“While there has always been interest from the US market, this has increased markedly in a year that saw a 22% increase in overseas enquiries about Irish property,” said REA Chairman Michael O’Connor.

“Overall, calls from overseas buyers represented 19% of all enquiries received by REA agents in 2015 and 16% of total sales.

“49% of our enquiries came from the UK, 8% from continental Europe, 10% from Australia, but the real surge in new interest came from the US.

“The average house price in the US in November 2015 was $374,900 (€341,656), compared to our Average House Price survey national value of €188,370, so there is obvious value for American buyers in Ireland.”

And Real Estate Alliance are offering Irish property vendors the chance to cash in on this mini-boom by registering for the Alliance’s upcoming New York Property Exhibition – the first of its kind to be held in the US.

REA are bringing thousands of properties to New York, giving a host of US buyers the chance to browse in comfort and talk to the experts on the ground.

The exhibition takes place in the Fitzpatrick Hotel at Grand Central, Manhattan from 5-7pm on March 3.

According to REA agents, 31% of overseas buyers are moving to Ireland to live and work, while 29% are purchasing a home for their retirement and 20% are purchasing as an investment.

32% of all overseas purchases in 2015 were completed for less than €100,000 and a further 20% of sales fell in the €100,000-€150,000 bracket, while 31% were properties sold for over €200,000.

The majority of buyers (41%) are aged between 40-50 and 28% are aged 30-40.

“US buyer interest is particularly strong in many undervalued rural counties and scenic locations and for the first time in the bigger cities, mostly from emigrants who feel that the time is right to return,” said REA’s Michael O’Connor.

“This presents many vendors with the opportunity of achieving better prices due to interest outside of the normal marketplace.”

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.

Further details on the REA New York Property Exhibition, and a list of local agents, can be found on www.realestatealliance.ie/NewYork or send an email to register for the event at info@realestatealliance.ie.

Available for interview:
Michael O’Connor, REA chairman and auctioneer 087 259 7034 michael@reaoconnormurphy.ie

Eamonn Spratt, REA vice-chairman 086 2531277 eamonn@reaspratt.ie

Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037

REA Q4 Report 2015

Average house prices in Dublin city and county fell by over 6% in 2015 as a combination of lack of suitable supply, high rents and the Central Bank’s deposit rules stagnated the capital’s market, according to a national survey carried out by Real Estate Alliance.

The average house in Dublin city and county now costs €332,000, down €21,500 (-6.08%) on last December’s price, the Q4 REA Average House Price has found.

And while prices in the capital have been hit following large increases in 2014, values in the commuter counties and the larger cities have grown by 4.58% in the 12-month period, with the average house now costing €206,853.

However, the biggest upsurge this year has been in the rest of the country, where towns have seen growth of 9.31%, and average prices have risen from €111,518 to €122,161.

Ireland’s largest cities have had a strong fourth quarter, with Cork (+3.64%), Galway (+4.17%), Limerick (+1.29%) and Waterford (+2.84%) all turning in their best performances since the survey began in 2013.

The average semi detached house nationally now costs €188,370, the Q4 REA Average House Price Survey has found – a slight rise on the Q3 figure of €186,102.

Prices in Dublin city and county fell by -0.75% in Q4, while Dublin city alone fell by -0.69% – the average three-bed semi now costing €357,500.

However, the biggest growth was in the rest of the country outside the commuter belt and larger cities, where house prices increased by 0.95% in the last three months.

The REA Average House Price Survey concentrates on the 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 to the end of the selling season in December.

The lack of suitable supply is the biggest influence on the property market nationwide, according to REA Chairman Michael O’Connor.

“What we have seen in the last three months are prices only increasing in areas that are offering people the accommodation that they require,” he said.

“People may want to buy housing, but if suitable properties are not available, they will not buy.

“We are seeing a lack of supply of good quality three-bed semi-detached houses across the country, and a desperate need for new developments.

“In many areas, the properties available in the sub-€220,000 level are either apartments, houses that are too small or need too much investment to bring them up to standard.

“The market is still stalled at the second–time buyer level, due to the restrictive nature of the Central Bank’s deposit lending rules.

“Many potential second-time buyers now only have the option of renting bigger houses and letting out their own, as they are not able to afford the 20% deposit to be able to purchase.

“There are very few suitable houses to buy at the lower end of the market for first-time buyers because potential second-time buyers have no way to trade upwards.

“While Dublin was the first region to recover, followed by the commuter areas, we are now seeing an increase in values in our largest cities outside Dublin a year later, and one-by-one our smaller towns have started to see increases.

“For the first time we are seeing developers trying to buy land in the anticipation of building as it is now economical to build in some of our larger cities.”

Prices in Kerry rose by 4.12% to €177,000 in Q4, while Munster neighbours Clare saw their average price go up 2.19% to €140,000 with both increases being fuelled by lack of supply, according to local agents.

Tipperary (+1.38% to €155,000) also saw house prices rise mainly due to a severe lack of suitable supply, while Monaghan (+2.56% to €120,000) experienced its first increase since 2008.

In Carlow (+1.07% to €142,000), local agents report a market influenced by repossessed properties negatively affecting values and while prices are rising, they are still selling at much less than build cost for developers.

The cash buyer is still more prevalent in country areas (47%) than in commuter counties (31%).

In the commuter counties, there was an average 1% increase in Wicklow, due to increased activity in Wicklow town up 3.77% (€265,000 to €275,000) and Bray up 1.54% (€325,000 to €330,000).

Meath and Louth were stagnant in Q4, with time taken to sell increasing from six to eight weeks on average in both counties.

However, three of the four REA agents in Kildare (with the exception of Naas) reported slight falls of -2.05% as lack of supply stifled the market in Q4, reducing average prices to €238,750.

In Dublin, the upper end of the market remained stagnant after suffering mid-year falls, as the seismic effects of the Central Bank rules are felt in the lower end of the market.

House prices in South County Dublin fell by -1.45% in Q4, with the effects being felt in sub-€290,000 housing.

House prices fell by €10,000 to €210,000 in three months in Tallaght (-4.55%) and by €5,000 in Lucan (-1.82% to €270,000).

“Constantly increasing rents have made it almost impossible for first-time buyers to save the deposit required,” said local agent Anthony McGee of REA McGee.  

“An average couple who are paying €1,400 a month to rent a two bed apartment in Tallaght, running an car and paying for childcare, cannot afford to save upwards of €20,000 for a deposit.

“And what is so frustrating for them is that what they are paying in rent exceeds the cost of a mortgage in the same property.”


(See case study for Tallaght)




Available for interview:
Michael O’Connor, REA chairman and auctioneer.
087 259 7034 moconnor@reamcdonald.ie

For comment on Dublin market:
Anthony McGee, REA auctioneer
087 279 9332

Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037



 

Reversal of Fortunes for Tallaght Q4 2015

The issues being experienced in Dublin’s typical average first-time buyer area, Tallaght, have typified the flux currently being experienced in the market.

Average three-bed semi prices in Tallaght and its environs have fallen by €10,000 (-4.55%) in the last three months, with three-bed semis now making €210,000.

“There are a number of major factors influencing the market in Tallaght, and throughout similar areas of South Dublin,” said local agent Anthony McGee of REA McGee.  

“Constantly increasing rents have made it almost impossible for first-time buyers to save the deposit required.

“An average couple who are paying €1,400 a month to rent a two bed apartment in Tallaght, running an car and paying for childcare, cannot afford to save upwards of €20,000 for a deposit.

“And what is so frustrating for them is that what they are paying in rent exceeds the cost of a mortgage in the same property.

“This is a huge first-time buyer market where people would traditionally rent for three or four years before buying.

“However, we now see people renting for 10 years because they will never be able to save the deposit.

“We have notice a trend recently whereby foreign nationals with good jobs have been leaving rented accommodation to return home purely because they cannot afford the rent and can never see themselves owning a house.

“House prices have fallen because there is a lack of suitable properties coming on stream and there isn’t a huge amount of people viewing or bidding as they are stuck in this rental mess.

“People have a limit and they will walk away rather than go above that number.

“The fact that loan offers are only lasting three months is proving to be very frustrating to buyers in an era of low supply.

“People getting lost in a maze of loan approval, which has to restart after three months.

“The rental market is contracting at a rate of knots as every house that we sell is now being bought by an owner-occupier.

“There are no new investors in the lower of the market. You can achieve double-digit yields if finance is available, but the banks are not lending to them
“A lot of existing landlords, who would see the potential in these yields, are in negative equity and will not get finance.”

Nationwide development rebates needed to solve housing supply crisis

The Government needs to impose the proposed local development charge rebate scheme on a nationwide basis in order to ease the current housing supply crisis, a leading estate agency group has advised.

Failure to recognise that supply problems are not just an issue in Dublin or Cork will do little to alleviate the current impasse which has led to a nationwide accommodation shortage, according to Real Estate Alliance.

“Although the Taoiseach has confirmed that the Government will introduce a local development charge rebate scheme for large housing projects in Dublin and Cork, they are failing to recognise the fundamental supply issues that exist in urban areas nationwide,” said REA Chairman Michael O’Connor.

“Our REA Average House Price Survey has consistently shown the extent to which a lack of supply has driven people out of the housing market and into a crowded rental space across the country.

“In concentrating on urban areas around the country, we have seen micro markets opening up, with specific towns in counties behaving completely differently, influenced by the availability of small numbers of starter homes.

“And further evidence of the nationwide shortage is shown in the recently announced 80% fall in available rental properties compared to this time last year.

“The cause of this nationwide lack of suitable housing supply, especially in three-bedroomed semi detached homes, is that builders cannot yet sell at a profit.

“The average price of a three-bed semi in our Q3 survey was €188,102 – and in simple terms, a builder needs to achieve €200,000 from the sale of a new home to cover the cost of construction.

“There is still a huge gap in the cost of building and bringing a house to the point of sale, and what it can achieve on the open market. Unless that is closed, we will continue to have a national housing crisis in the short term.

“In urban areas around the country, the market value of a house is in the order of €130 to €150 per square foot.

“However, the cost of building and bringing a house to the point of sale varies between €220 to €250 per square foot – a figure that is even higher in Dublin.

“In an environment where such a big gap exists, there is no incentive to start building, and the State must work to close this uneconomic gap.

“We feel that the State ultimately needs to abolish the 13.5% VAT rate on new homes, backed up by introducing the proposed local development charge rebate scheme on a nationwide basis, a combination of measures which will reduce the cost of a new house by €60,000 on average.

“Introducing a zero vat rate on new homes would reduce a €250,000 property to €220,000.

“The €30,000 presently charged on such a house is an inequitable burden on a young couple who are forced to borrow that sum over the life of a mortgage to pay tax.

“Coupled with the rebate on the local development charge should bring a three-bedroomed family home priced at €250,000 down to something in the order of €190,000.

“This will provide an incentive for the supply chain, but the State also needs to look at the effect that the mortgage deposit rules have had on buyer confidence.

“Just as many couples cannot afford to get on the housing ladder, second-time buyers cannot move and free up cheaper properties for new entrants.

“It is now time the Central Bank revisit the rules, raise exemption limits and include second-time buyers.

“We propose that the price ceiling for first-time buyers should be extended to €330,000 – in line with the average values in Dublin and secondly, second-time buyers should be assisted by allowing them to borrow 90% up to €220,000 as the current requirements are too prohibitive.

“Either of our two options will provide stimulus to allow the market to function, but together, they will provide a sensible solution to solving what is a nationwide housing crisis.”

Michael O’Connor of REA O’Connor Murphy, Limerick, was appointed Chairman of Real Estate Alliance at the Alliance’s recent AGM. Eamonn Spratt of REA Spratt, Dungarvan has been appointed as Vice Chairman.


Ends



Pic enclosed

Sample caption: Michael O'Connor of REA O'Connor Murphy, Limerick, who was appointed Chairman of the Real Estate Alliance Group at the Alliance's AGM in Limerick.

Available for interview: Michael O'Connor, Chair, Real Estate Alliance, 087 2597034

Media information: Darren Hughes, MediaConsult, 086 293 7037, darren@mediaconsult.ie

REA Munster Auction 12th November Results

150 people registered for the REA Munster Auction at the Limerick Strand Hotel including telephone/proxy bidders. 94% of properties were sold at auction with the remaining properties presently under negotiation. Average prices exceeded 35% above the minimum reserves, in particular there was considerable interest in one commercial property at Barrington Street that had a minimum reserve of €200,000 and sold for €337,000. There were multiple bidders on each of the properties indicating strong demand in the Munster region. We have six auctions planned for next year with the first one to be held in February 2016, details to be posted online in December.

Athlone Lands Sell For Twice The Asking Price

REA Hynes report strong results from their most recent online auction. The firm brought 15 acres of residential zoned lands to market in Cornamaddy, Athlone to market with an AMV of €150,000. The property quickly hit this figure as bidding rose rapidly to €200,000. Bidding then accelerated, blasting through the €250,000 barrier and finishing at €300,000. The property attracted 12 bids in total from 4 different bidder in 3 cities.
Commenting on the auction, Healy Hynes of REA Hynes had this to say. “Todays strong result is an indication of the increased confidence in the markertplace. Over 250 people vewed the property and the auction was watched live from parties in 7 towns and cities. Although house prices in Athlone are still shy of the figure required to make new home building viable, we are hopeful that results like this will encourage more developers back to Athlone and see badly needed new home stock coming on stream.”
The firm were also bringing a 2 bedroom apartment in Inish House, Golden Island to auction on the same day. Mr. Hynes confirmed that this property was sold prior to auction for an undisclosed sum.
“With an obvious number of unsatisfied underbidders from this auction, it is clear that the demand for development land in Athlone is on the upturn.”
Commenting on the online platform itself, Mr Hynes said “By conducting the auction online, we are able to attract buyers from well outside the local area, opening up a much wider market for our clients. Our results throughout 2015 show that the online space is where the market is moving, we have had 100% success with all our online auctions. Properties have exceeded the reserves; in some cases achieving double what was expected.”
Anyone interested in finding out more about REA Hynes online auction platform can contact Healy Hynes on 0906473838 or email: healy@hynes.ie

REA Leinster Auction a success

The first REA Leinster auction was a terrific success, with more than €3,500,000 worth of  residential and commercial property sold – with some going for more than 60% over their AMVs.

Eighteen properties were sold under the hammer at the auction in the Louis Fitzgerald Hotel in Newlands Cross, Dublin, on the day at an average price of 21% over their AMVs. An additional four properties are expected to close under private treaty negotiations.

There was widespread interest in the auction with bidders at the hotel being joined by hopeful investors calling in bids from Australia, Canada and the UK.

Harry Sothern, REA Leinster Auction, said: "We are very satisfied with how the auction went. Of the properties sold we had an average price of 21% over the AMV with some properties in fact achieving more than 60% over their AMVs. Bidding came in from Australia, Canada, England as well as locally. We sold a number of properties immediately after the auction and expect to close more in the coming days. Overall we are very satisfied and look forward to running the next Leinster auction in November"

Local agents involved in the auction said that with properties under negotiation expected to conclude in the coming days, they anticipate the auction will have a success rate of 85% when all is finalised.

REA has 26 estate agents in Leinster and 55 nationwide.


For Further information please contact Ed Dempsey (086 172 4449), or
Richard Burke or Craig McKechnie 01 531 3532

REA Average House Q3 survey - Rule change needed as spiralling rents rule out house buying for many

The average three-bed semi in South County Dublin has seen €15,000 wiped off its value in three months as the new deposit rules stifle the higher end of the market, according to a national survey carried out by Real Estate Alliance.

And spiralling rents will cut off mortgages as an option for many young couples unless the Central Bank revisit their deposit rules, raise exemption limits and include second-time buyers, according to REA.

Just as many couples cannot afford to get on the housing ladder, second-time buyers cannot move and free up cheaper properties for new entrants and causing a logjam in the capital.

While the average house price in Dublin city and county has fallen by over €5,000 in the past three months, South County Dublin has been the hardest hit in the country, with prices falling by -4.17% since the end of June.

The average semi detached house nationally now costs €188,102, the Q3 REA Average House Price Survey has found – a slight rise on the Q2 figure of €186,968.

The REA Average House Price Survey concentrates on the 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 to the end of September.

The price of an average three-bed semi in Dublin city and county has fallen by -1.47% from €339,500 to €334,500 since the end of June.

“Our agents on the ground in Dublin are reporting a growing withdrawal of couples aged between 25-40 from the market due to the new mortgage deposit regulations,” said REA Chief Executive Philip Farrell.

“When the Central Bank introduced the new rules, they stated that they could revisit them, and we believe that they need to do so as a matter of urgency.

“We believe that the new borrowing requirements are exceeding their desired affect and are now starting to prevent the market from functioning in a cohesive manner.

“We propose that the price ceiling for first-time buyers should be extended to €330,000 – in line with the average values in Dublin and secondly, second-time buyers should be assisted by allowing them to borrow 90% up to €220,000 as the current requirements are too prohibitive.

“Falling house prices are not a sign of success or affordability, they are falling because young people cannot afford to qualify for a mortgage, and second-time buyers cannot afford to move out of houses in the €220,000 band.”

Rising rents have had a huge effect on the Dublin market according to Anthony McGee of REA McGee in Tallaght, where prices have dropped -4.3% to €220,000.

“A typical couple are now being expected to pay rent of €1,200 a month on a two-bed apartment in Tallaght.

“When you combine this massive rent with childcare and other expenses, there is very little chance that people will then save the 10/20% deposit required on a property.”

Prices in North County Dublin have decreased by -1% to 247,500 and Dublin city by -0.83%.

There has also been an increase of 5% in the amount of cash buyers (34%) in the Dublin city market, reversing an 18-month trend that has seen mortgage buyers increase.

The average three-bed semi price rose by 0.71% to €206,676 in Tier two – the commuter counties and the larger cities over the three month period.

“Average properties in the extremes of the outer commuter belt also felt an increase in Q3, with Kilkenny rising by 5.45% to €145,000 and Westmeath growing by 4% to €130,000 – both figures well inside the first-time buyers threshold,” said Philip Farrell.

“However, in previously growing areas such as Cork and Galway cities, the market is flat due to prices being over the first-time buyer threshold.

Prices in the rest of the country grew by 2.70% in Q3, to €120,786.

The biggest upward movement in prices over the past three months have come in Roscommon (+8.33% to €65,000), Cavan (+7.79% to €70,000) and Monaghan (6.36% to €117,000) – counties operating off a low base that have not previously felt the benefit of the property uplift that took hold in 2014.

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.

Ends

Available for interview:
Barry McDonald, REA spokesperson and Dublin auctioneer.
086 387 3800 bmcdonald@reamcdonald.ie

Media enquiries:
Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037

REA Munster auction a massive success

162 people registered for the Auction yesterday at the Limerick Strand Hotel for the REA Minster Auction. The Auction offered a selection of properties all through Munster. The mix of properties were between 2 bedroom apartments, 3 bed semi detached and mid terraced houses and some commercial. Out of the 21 lots that went for sale 16 of them sold at Auction, 2 have been agreed since the Auction, 2  are presently under offer and the final lot is to be placed back on the market by Private Treaty. Michael O’Connor says he is very happy with the turnout today and the bidding that took place. By close of business today we will have 85% of the properties sold which Michael believes is a good return for any Auction sale. Our next Auction is to be held on the 12th November at the Limerick Strand Hotel and we estimate to have circa 30 properties throughout Munster on offer. All information on this Auction will be on our website www.reaoconnormurphy.ie within the coming weeks.

€6.5m of commercial and residential property to go under the hammer at first REA Leinster Auction

€6.5m of commercial and residential property to go under the hammer at first REA Leinster Auction

Louis Fitzgerald Hotel, Newlands Cross, Dublin on the 15th of October

The Real Estate Alliance, one of Ireland’s biggest estate agent groups, has announced the first in a series of auctions comprising properties from its members throughout Leinster.

The first REA Leinster Auction will be held at the Louis Fitzgerald Hotel, Newlands Cross, Dublin, on October 15th. More than 35 residential and commercial properties from throughout the 12 counties will go under the hammer, with the auction expected to raise in excess of €6.5m.

Among the properties up for sale are a hotel in Carlow, office units at Baker’s Corner in South Dublin, an industrial premises in Tullamore and as many as 30 residential properties from throughout Leinster – including 10 in Dublin. Guide prices range from just €33,000 for a two-bedroom house in Carrick On Shannon, Co Leitrim, to €540,000 for a three-bedroom period home in Rathmines, Dublin 6.

Bidding for the auction will take place over the phone, as well as at the hotel and will be streamed live on the internet.  All properties are available to view prior to the big day.

Harry Sothern, REA estate agent and organiser of the auction, said: “We have a wide range of superb commercial and residential properties that will appeal to both investors and home-buyers alike. REA agents from all over Leinster are bringing properties to this auction including several prime lots in Dublin.

“This is the first auction that we’ve organised by pooling the tremendous resources of the REA agents in Leinster, and we’re looking forward to hosting a number of similar auctions in the near future.”


Commercial

Included in the portfolio of properties is a wonderful opportunity to purchase a hotel in the heart of Carlow Town. The Courthouse Hotel – with 18 bedrooms, a bar and function room – will be auctioned as part of a lot which also includes a retail unit, apartment and parking for 15 cars.  Located close to the Institute of Technology and many of the local tourist attractions, these properties offer scope to be retained as they are or converted into student accommodation. The AMV for this lot is €375,000.

An elevated roadside site of 1.903 ha/4.7 acres in Cloverhill, Ballybrook, Co Cavan, comes with planning permission for 49 residential units. It has an AMV of €60,000.

Also available is a substantial site of circa 0.16 hectares (c. 0.39 Acres) on Main Street, Duleek, Co Meath. It comprises a building that was formerly operated as a public house with parking for approximately 40 cars. It goes under the hammer with an AMV of €195,000.

Other highlights include two office units (130sq.m) in the Forge Building at Baker's Corner on Rochestown Avenue (AMV €165,000) and an industrial premises in the Axis Business Park, Tullamore (302sq.m - AMV €80,000).  

Residential

Residential properties include a range of houses and apartments in Dublin and throughout Leinster. There is a two-bedroom house in Carrick-On-Shannon, Co Leitrim, with a guide of €33,000 and a 474 sq.m 6 bedroom property with 1.4 acres of land in Durrow, Co. Laois, guiding €275,000. Many of the properties are in walk-in condition, while some require renovation.

In Dublin there are numerous family homes located across the city. With an AMV €535,000, Hybrasil Strand Road, Portmarnock, Co. Dublin is an imposing 3 bedroom family home with a wonderful open aspect over green space and the estuary. Hybrasil enjoys beautiful modern interiors. A one-bedroom ground floor apartment at The Gasworks, Dublin 4, is on the market at €250,000. Extending to 50 sq.m, this property is located in the heart of Silicon Docks on Barrow Street and surrounded by a host of stylish restaurants & bars.

Number 5 Charleville, Rathmines Road, Rathmines, Dublin 6 is an imposing period family home boasting many modern features while retaining much of its period charm. It is guiding €540,000. Full planning permission for a two storey extension to the rear was granted in Feb 2006 but has since lapsed.

Also Included in the auction is a superb opportunity to acquire five-bedroom detached house in the much sought-after sunny south-east town of Rosslare, Co Wexford, with an AMV of €160,000. Ideal as a primary residence or a holiday home, the property is well fitted and finished, and is located in a small quiet development called Rosefield comprising of just 7 detached homes on Rosslare Strand.

Piper's Cottage, located on the lush parkland grounds of the five star Kinnitty Castle,  Co Offaly is as detached two story stone cottage with thatched roof on a circa 1.54 Hectare (3.8 Acre) site with and AMV of €80,000. The property is in need of extensive refurbishment throughout.

Archerstown Lodge, Durrow, Co Laois, is an impressive detached, six-bedroom dormer house extending to c. 474 sq.m and situated on an elevated site of c. 1.4 acres. The property features a cut stone exterior and slate roof, electric entrance gates, front and rear access from the public road with a post and rail driveway. The ground floor has under-floor heating and tiled floors throughout, whilst the first floor is wooden flooring throughout. Stand-out features include the large feature stone open fireplace, the wrought iron spiral staircase and the large bathroom with sunken Jacuzzi. Of the six bedrooms, 5 are ensuite.

REA has 26 estate agents in Leinster and 55 nationwide.


For Further information please contact Ed Dempsey (086 172 4449), or
Richard Burke or Craig McKechnie 01 531 3532

c. 45 Acres Sold at Auction at Gorteenaskagh, Brittas, Co. Limerick

REA John Lee sold c.45 at Gorteenaskagh, Brittas, Co. Limerick at Auction last week. 

The Roadside Holding extending to c. 45 acres attracted a lot of attention with 3 interested farmers emerging as proceedings got underway. Bidding opened at €150,000 increasing in €10,000 bids to €250,000. At this stage there were 3 bidders and after a short break bidding increased to €290,000 in €5,000 increments. After further consultation the property was offered a final time and reached €302,000 with only two bidders. At this stage the property was withdrawn and after a period of lengthy negotiations a sale was concluded at a satisfactory higher price in the region of €7,000 per acre.