Ask the experts: How do you see the Irish residential market behaving in 2017?

Eamonn Spratt, Chairman, Real Estate Alliance

1. How do you see the Irish residential market behaving this year? (2017)
Our agents nationwide estimate 6% growth in 2017, off the back of an 8.4% increase last year – however, there is a lower level of expectation in the commuter counties at 3.8%.
We have already noticed a tailing off of receiver/bank/fund sales and a marked increase in first-time buyers at viewings in the latter weeks of Q4, setting the trend for 2017.
A lack of supply is continuing to push prices upwards, which is bringing builders back into the market.
2. In what locations do you expect to see most capital value growth?

Stronger price centres such as Dublin and Cork city will see most growth, due to the easing of the Central Bank mortgage lending restrictions.

Our agents in Dublin are predicting a 6.8% rise in 2017 and we are already seeing the positive effects of first-time buyers returning to viewings.

While expectations in the commuter areas are lower at 3.8%, a complete scarcity of suitable supply in the rest of the country is expected to fuel increases of 7.3 in our larger rural towns nationwide.

3. Are prices static or falling in any locations that you can think of?

Prices were static in commuter towns such as Ashbourne, Blessington, Naas, Maynooth and Celbridge in Q4, with low growth figures in 2016.

4. Where do you see rents going in 2017?

Rents will continue to rise until supply improves. Until building starts, this issue won’t be dealt with. In Dublin, new stock is under construction and now that first time buyers are re-entering the market, there may be a little easing.

However, the introduction of rent controls in the capital may see many landlords look at exiting the market, reducing the amount of available stock.

5. What impact (if any) do you think the combined effects of last Budget’s Help To Buy scheme combined with the Central Bank’s end of year tweaks to its lending regime will have on the market?
The combination of these measures has already given an injection in to the market with first-time buyers suddenly in evidence at viewings in the capital in November.

The moves have given the younger generation a foot on the ladder to buy a family home.

6. What are your views on Rebuilding Ireland, Minister Coveney’s plan to sort out the housing crisis?

The State needs to fast track the supply of affordable homes to address the void of local authority construction over the last decade.

The Minister seems to be passionate about the task in hand, but the proof will be in the building.


7. What steps would you urge the Government to take in 2017 to help solve the housing crisis?
Until the procurement process is speeded up and the provision of services to zoned lands are enhanced, this vehicle won’t get out of second gear.

We have zoned lands, developers are ready to build, but nationally they are finding that they can’t get the required services in due to a multiplicity of agencies such as Irish Water.

Local authorities also need to be realistic and introduce a phasing of upfront monies to include development fees and contributions.

Local authorities have also changed the format of the bond that they are now accepting, looking for payments upfront whereas previously an insurance bond would suffice.

8. How do you see the supply situation at the moment? Where do you think it will go in 2017?

Development financing is the key to solving the housing supply shortage as home building becomes potentially profitable again for builders.

The majority of new housing is set to be delivered outside the Greater Dublin and commuter area where the issue now is financing to fund construction – especially in areas where the house price is substantially under €200,000 but a need for housing exists.

The State can impact housing supply by introducing a phased payment structure for developers to including development fees and contributions.


9. In your experience, what percentage of buyers are paying cash? Do you think this will rise or fall this year?

Our REA Average House Price Survey for Q4 shows that 31% of purchasers are cash buyers, a drop of 16% on the December 2015 figure of 37%.

The highest percentage of cash buyers are in the rural towns outside the commuter areas, where the figure stands at 38%, down from 44% this time last year.

In Dublin city, we have seen a large increase in mortgage-funded purchases over the past year, with just 22% cash buyers in Q4.

10. What would you buy if you were an investor spending (a) €250,000, (b) €350,000 and (c) €600,000. (specificially to a property type and a specific area address egs: three bed semi in Chapelizod/ two bed apart in Portlaoise etc) and why?
(a) Spending €250,000 – Three bed semi in Tallaght area achieving €1,600pm
(b) Spending €350,000 – Three bed semi in Firhouse / Knocklyon area achieving €1,850 - €1,950pm
(c) Spending €600,000 – Four apartments in north Dublin that yield 10% per annum and will appreciate in value.

11. In your view how is the supply side of the residential property market sitting at the moment?
Supply is extremely low – as an example, there are only 62 properties for sale in the Tallaght area at the moment.
There is a big under supply of suitable properties for people to downsize to, such as bungalows in towns, and also very few 4 or 5 bed detached in the stronger rural towns for families.
12. If supply is at a record low right now why aren’t enough people selling?

The lack of suitable supply to trade up to is an issue throughout the market not just at the lower, new or first-time end.

While the Central Bank mortgage restrictions have been eased for first-time buyers, second time buyers still cannot afford to save the massive deposits needed to make the step-up from a 225,000 home to a 400,000 home – thus keeping supply low at the starter end.



13. Is it a good time to be a first-time buyer? State why?
Yes. We are seeing evidence of a sudden return of the first-time buyer to viewings, especially in the Dublin area, since the lifting of the Central Bank restrictions.

The 16% annual fall in cash buyers points to a willingness of banks to lend again and compete for business.

However, the choice is limited and there are little to no new schemes available, especially outside Dublin.

14. Is it a good time to trade down? State why?

If the rate of growth is consistent across the market, you have more to gain on the larger asset, and they may inform your decision.

If I own a house worth €1m, and growth is forecast at 5%, then I stand to gain €50,000 in value over the year. If I am moving down to a €300,000 house it will appreciate by €15,000 – the difference is €35,000.

For older couples downsizing, there is a lack of suitable smaller accommodation nationwide.

15. Is it a good time to trade up? State why?
Yes. There should be strong interest in what you have to sell. The average house price rose by 8.4% last year and recent announcements have been positive for the market.

Also, the value differential between a three-bed semi or similar and four-bed detached either in an estate or the country is now much less than any time since the 90s.

Assuming that you can get the finance, it is a good time to sell.

16. In your view, will there be enough new homes to meet demand in 2017?

It is difficult to see the construction sector meeting the significant demand in the stronger centres in 2017.


17. Is there a danger of another property bubble forming as some are claiming? Explain

That fear always exists in a cyclical property market. At the moment, the restrictive nature of deposit limits for second-time buyers and very short mortgage approval time limits are serving to keep a rein on the market.

For a market to overheat you would need much more freely-available credit. This is not the case at the moment.

Not many people are purchasing for a quick return – they are either owner occupier-led or investors looking at yields over a five to ten-year play.


18. In your view, how can we best facilitate the roll out of new homes required to solve the crisis?

We need available and affordable development finance, the provision of serviced zoned land and a realistic expectation from local authorities around associated development costs such as  phased payments for development fees and contributions.

19. In your view, what particular challenges are buyers facing in regional towns?
The main issue is a limited supply of suitable four bed homes which provide an opportunity for the starter home family to trade up.

A higher percentage of cash buyers, who are outbidding young mortgage buyers, are able to purchase and complete as they can bypass many of the time factors associated with the modern mortgage process.


20. Do you believe developers when they say building is not taking place because the cost of building is still too high relative to what people will pay? What is your view here

The cost to build to date versus the selling price of the new home has been a genuine prohibitive factor for developers, especially in areas where the average house price is less than €200,000.

House prices in Tipperary are expected to rise by 6.8% in 2017

House prices in Tipperary are expected to rise by 6.8% in 2017, a survey by the Real Estate Alliance Group has found.

Limited supply and the easing of first-time buyers restrictions are expected to continue the 9.8% growth that the county experienced in 2016, according to REA.

This comes as the Q4 REA Average House Price Survey revealed that prices in Tipperary had increased by €12,625,000 over the past year – with the average three-bed semi now costing €141,250.

Lack of suitable supply has driven average house price rises throughout the county in 2016.

Nenagh showed the biggest increase at 19.7% – with prices moving from €117,000 to €140,000 in the 12-month period.

Prices in Roscrea increased by 2.1%, and stand at €120,000, while those in Clonmel rose 3.2% to €160,000.

Prices in Newport rose by €20,000 to €145,000 over the year – an annual increase of 16%.

The price prediction survey found that agents expect prices nationally to rise by 6.1% over the next year – with Dublin predicted to grow by 6.8% over the next 12 months.

Agents in the three main cities outside Dublin are optimistic about 2017, with rises of 10% predicted in Limerick and Galway, with Cork looking at a more modest 5% increase with agents in the latter two areas highlighting a lack of new developments planned for the cities.

The outlook for the commuter areas surrounding the capital is quite cautious, with counties around Dublin predicting a rise of 3.8% on average and many agents fearing that the market has hit its height under the current financial regime.

The average semi-detached house nationally now costs €202,926, the Q4 REA Average House Price Survey has found – a rise of 1.4% on the Q3 figure of €200,148.
The biggest percentage increases over the past year 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 12.3% over the year, with a three-bed semi now costing €134,290 – an increase of 2.4% in the past three months.

 “The announcement of the easing of the Central Bank restrictions has given the market great short-term hope, but the real problem in the property lies in supply,” said REA chairman Eamonn Spratt.

“We are bringing people into the market, but we have no long-term plan to provide the suitable housing that they need around the country.

“The fact remains that builders will not create developments unless those properties can be sold for more than €200,000.

“Until that point, unless there is state intervention on supply financing, we will not see sustainable building in areas where the average is below that point.

“It is this realisation that is causing price inflation in towns around the country, with the highest rises of all – an average of 7.4% – being predicted for the sector outside of Dublin, the commuter areas and the major cities.




Ends

Available for interview:
Eoin Dillon, Nenagh, 087 2052 716
Seamus Browne, Roscrea, 0872499570
James Lee, Newport, 086 2351221
John Stokes, Clonmel, 086 8213777

Opinion Piece: Eamonn Spratt - Chairman of REA

What a difference a year makes, with property agents around the country all predicting rises for 2017 that would indicate a return to a functioning market.
But while a national average increase of 6.1pc seems healthy and consistent, and in no way indicating a bubble, we could be facing a vastly different situation in 12 months' time if the current supply does not change.

The Irish Independent Real Estate Alliance survey shows optimism in the market, with the return of first-time buyers to viewings, thanks to the easing of the Central Bank deposit restriction and the Government's Help to Buy scheme. However, they will compete with people trading down for a limited supply of mostly second-hand stock, unless the Government instigates Help to Build measures for developers.
New home building will not take place unless the barriers are lifted, which at the moment are preventing developers from entering the market. Developers will have to be encouraged to build in areas where it is not yet viable, but demand exists - and the State has to intervene to allow that to happen.

For the first time in eight years, our members are seeing builders looking for suitable development land. Our members have received feedback that developers are finding construction finance difficult to procure.

Nama chairman Frank Daly recently confirmed it may fund 20,000 residential units by the end of 2020, subject to commercial viability. About 78pc will be delivered in Dublin, and 15pc in commuter counties such as Kildare, Wicklow and Meath - and it will be profitable for builders to construct in these areas, with selling prices in excess of the building cost of €200,000. However, just 7pc of housing will be delivered outside the Greater Dublin area, where the issue now is financing to fund construction - especially in areas where the house price is substantially under that break-even level.

Our agents in Cork and Galway cities have noted a lack of new developments coming on-stream, which should be a warning for the rest of the country. House building in 2017 will not just be about the price that can be obtained - the path to breaking ground must be cleared for development to take place. Until the procurement process is speeded up and the provision of services to zoned lands enhanced, this vehicle won't get out of second gear. There are several factors at play.

In areas where it is profitable to build, we have zoned lands, and developers can't get the required services due to having to deal with multiple agencies.

Some local authorities are looking for payments upfront whereas previously, an insurance bond would suffice. Councils also need to introduce a phasing of upfront monies to include development fees and contributions. Concerted action can be taken in these areas to address a supply issue which is approaching critical in some places - for example, there are only 62 properties for sale in the Tallaght area at the moment.

The market has also seen an increase in people downsizing. However, we need a supply of people trading upwards, which is where the Central Bank's deposit restrictions and multiplier limits have hit the second-time buyer. The person who wishes to trade up and leave the smaller home which the downsizer now wants, is finding it difficult to secure the finance to do so.

Eamonn Spratt is chairman of the Real Estate Alliance

REA House Price Predictions 2017

First-time buyers, encouraged by the easing of the Central Bank’s restrictions on mortgage deposit lending, will drive a continued rise in house prices throughout 2017, estate agents have predicted.

A survey carried out for the Irish Independent by the Real Estate Alliance Group has found that agents throughout the country expect prices to rise by 6.1% on average in 2017.

And after a bumpy year for the Dublin market, agents in the capital are predicting that house price rises will outstrip the national average and grow by 6.8% over the next 12 months.

Rising rents, a lack of suitable supply and the punitive mortgage deposit rules for first and second time buyers had combined to put the Dublin property market into reverse throughout the opening months of 2016.

However, an increase in mortgage-approved buyers and the recent easing of the Central Bank’s deposit restrictions has seen first-time buyers return to viewings.

This, combined with a shortage of suitable supply, has caused prices to appreciate, and REA agents in the capital are predicting that the outlook is bright for the new year, at least in the lower end of the market.

However, there is less appreciation anticipated in the upper ends of the family home scale as serious issues around the income multiplier and the deposit rates put the brakes on many second-time buyers trading up.

Agents in the three main cities outside Dublin are optimistic about 2017, with rises of 10% predicted in Limerick and Galway, with Cork looking at a more modest 5% increase with agents in the latter two areas highlighting a lack of new developments planned for the cities.

The outlook for the commuter areas surrounding the capital is quite cautious, with counties around Dublin predicting a rise of 3.8% on average and many agents fearing that the market has hit its height under the current financial regime.

Agents in Meath are predicting just a 1.8% change next year, with some areas such as Navan and Kells forecasting that there will be no movement in the coming 12 months, thanks to a lack of new development and a shortage of suitable supply.

There was minimal growth in the final quarter of 2016 in Wicklow, however, agents are confident that the market will react positively to a series of significant upcoming new developments adjacent to the N11 including Kilcoole, Rathnew, Arklow and Wicklow Town.

Prices in Kildare were stagnant in the REA’s Q4 Average House Price Survey, and REA are predicting that the Government’s Help To Buy Scheme and the easing of the Central Bank restrictions will combine to produce a 3.5% increase in the coming year.

“The easing of the Central Bank restrictions has given the market great short-term hope, but the real problem in the property lies in supply,” said REA chairman Eamonn Spratt.

“We are bringing people into the market, but we have no long-term plan to provide the suitable housing that they need around the country.

“The fact remains that builders will not create developments unless those properties can be sold for more than €200,000.

“Until that point, unless there is state intervention on supply financing, we will not see sustainable building in areas where the average is below that point.

“It is this realisation that is causing price inflation in towns around the country, with the highest rises of all – an average of 7.4% – being predicted for the sector outside of Dublin, the commuter areas and the major cities.

“Longford, for example, grew by 41% in 2016 and prices are predicted to rise by a further 15% this year.

“However, the price of the average house in Longford town is just €78,000 and will reach €90,000 by the end of 2017 simply because the oversupply on the market has now sold and there are no new developments on the horizon.

“Double digit rises of 10% are also being predicted for the same reason in Roscommon, Monaghan, Cavan, Galway County and Kilkenny.”

The lack of building opportunity could hurt future economic development in lower-priced counties, as the example of Carrick-Shannon in Leitrim shows.

Local agents report that employment is growing in the town and that there will be a shortage of suitable properties through till 2018 at the earliest, with lack of supply predicted to drive a 10% rise in the coming year.

“The average house price is €122,000 and unless houses can sell for €180,000, builders will not make money and start building,” said Joe Brady of REA Brady.

In some areas of the commuter belt, those trading down are now in competition with first-time buyers such as In Ashbourne (+2%) and Drogheda, which is predicting a 7% rise.



Ends

REA Q4 Average House Price Survey

The price of an average house in Dublin rose by 4.2% in the final quarter of the year as first-time buyers returned to viewings in the capital.
The average three-bed semi-detached in Dublin city now costs €389,167, a rise of €15,834 (4.2%) in the last three months and an increase of 8.9% over the past year, the Q4 REA Average House Price Index has found.
The announcement of the upcoming easing of the Central Bank lending restrictions on first-time buyers has had an immediate effect in Dublin, with hopeful buyers suddenly back in evidence at house viewings.
And the survey found it took just five weeks to sell the average house in Dublin City in Q4, a drop of two weeks from Q3.

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.

There were substantial rises in both South County Dublin (€406,667 up 2.5%) and North County Dublin (€267,500 up 2.9%) as the capital’s property market, which had been falling this time last year, finished with an 8.1% overall annual increase.
However, while the easing of the restriction on first-time buyers deposits has had an impact in the capital, the commuter market experienced a rise of just 1% in Q4 with prices static in commuter towns such as Ashbourne, Blessington, Naas, Maynooth and Celbridge.

And the major cities such as Cork, Limerick and Galway followed much the same pattern in Q4, returning an increase of 1.1% over the last three months, with prices static in Cork City at €295,000 – a rise of just €10,000 (3.5%) on the December 2015 figure.

The average semi-detached house nationally now costs €202,926, the Q4 REA Average House Price Survey has found – a rise of 1.4% on the Q3 figure of €200,148.
The biggest percentage increases over the past year 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 12.3% over the year, with a three-bed semi now costing €134,290 – an increase of 2.4% in the past three months.

While the easing of the Central Bank deposit restrictions has had a positive effect on the market, the lack of suitable supply is the biggest influence nationwide, according to REA Chairman Eamonn Spratt.
“In many lower-priced towns, a previous oversupply has now worked its way out of the market, and buyers are realising that there will be no new developments as it is still uneconomical for builders to start new-builds,” said Mr Spratt.
“For that reason Longford, which is the most affordable county in the country, has seen its three-bed semi price rise by a massive 41.8% over the past 12 months – going from €55,000 last December to its present price of €78,000.

“Similarly, investors in property in Roscommon would have seen their values rise by 28.6% over the past year, with agents reporting that Q4 rises of 8% in Roscommon town are fuelled by buyers realising that there will be no further building in the area in the short term.”
After seeing the biggest growth in the country over the past few years, counties in the commuter belt have seen their progress slow or stagnate over the past three months with Meath (1%), Kildare (0%) and Wicklow (0.8%) all starkly contrasting with the growth in the Dublin market.
“Our agents are reporting that the income multiplier restrictions are having the greatest effect in commuter counties, and couples earning €60,000, for example, cannot now afford to purchase suitable homes due to lack of supply,” said Eamonn Spratt.
“There is a cap with the multiplier of 3.5 times income beyond which many couples cannot go, and while there is plenty of activity, in some commuter towns prices are probably as high as they can go under the current regulations.
“However, some of those same commuter towns nearer Dublin are beginning to see new builds commencing which shows that developers are confident that if they build units, they will sell above the profitability cut-off floor of around €200,000.”
The average time taken to buy a house dropped from six to five weeks in Q4, with both Dublin city and county and the country’s large regional towns experiencing shorter sale times.
There was also an increase of mortgage-financed buyers nationwide with cash buyers making up just 32% of sales around the country – down from 40% at the end of 2015.
In Dublin, just 25% of sales are now to cash buyers, while the figure in the commuter counties is lower again at 21%.
Barry McDonald of REA McDonald in Lucan thinks it will be the New Year before we see the full impact of the lifting of the Central Bank restrictions and the Government’s Help To Buy scheme.
“First-time buyers are definitely the main cohort out in the market in Dublin – most obviously in the €250,000 to €300,000 price bracket which is moving very well,” he said.
“However, as you move up the price range to the €400,000-plus market, buyers are thinner on the ground.
“This is a side-effect of the continued 20% deposit restrictions placed upon second-time buyers, who cannot afford to trade up in the market, thus freeing up suitable starter homes.

“We are also seeing vendors thinking that they may do better in the new year and holding off before coming to market.
‘The market is very definitely being driven by supply and not demand. The typical scenario now is that there are between one and three bidders for a property rather than five or more and buyers are finding that if they miss out, there is not necessarily an equivalent property out there.”

Ends
Media information: Darren Hughes, MediaConsult, darren@mediaconsult.ie, 086 293 7037
Available for interview: Eamonn Spratt, Chairman REA, 086 253 1277

Properties sold at auction in Roscommon

Publin Auction held on Friday 2nd Dec at Carthys Bar, Roscommon Town.
Of the 7 Lots, we sold 4 on the day.  Interesting to note 3 of the parties who purchased currently reside in the UK.

Lot 1 Sold for 107,000
Lot 2 Sold for  €48,000
Lot 5 Sold for €30,000
Lot 6 Sold for €49,000

2 Lots that did not sell was Land and REA Seamus Carthy are actively finalising each of these sales now.  The remaining Lot was a house that was withdrawn and is now back on the market guiding €97,500.

REA Seamus Carthy + 353 90 6630001

Lot 1
The Meadows, Scrine, Rahara, Co. Roscommon.
4 Bed Detached Home finished to an extremely High Standard internally and externally. Convenient to  Roscommon Town and Athlone. Comprising  Rec. Hallway, Sitting Room, Kitchen/Dining Room, Utility, W.C,  4 Bedrooms (1 ensuite) and a bathroom.
Pic
AMV:  €100,000
Lot 2
Patrick Street, Castlerea Town
Town Centre Commercial Property presented in  excellent condition and will be of interest to owner occupiers and investors. Property is ready for immediate use. Obvious potential for Residential Use.
AMV: €45,000
Lot 3
Fairymount, Castlerea, Co.Roscommon.
2.49 Hec/6.1 Acres with Outbuildings/Stable facilities situated thereon. Good Land and offers site potential subject to planning.
Pic
AMV: €40,000
Lot 4
Knockroe, Castlerea Town.
4 Bed Detached home situated in the much sought after area of Knockroe. Conveniently located to Train Station (Dublin/Westport Route), Schools, Shops etc. Kitchen/Dining Room, Sitting room, Utility Room, W.C, 4 Bedrooms & Bathroom.
AMV Range: €90,000 - €100,000

Killaloan House on C. 35 Acres sold at Auction

Sold the attached property on circa 35 acres for €580,000 circa €16,500 per acre -  residence was in need of complete modernisation
SOLD at auction. KILLALOAN HOUSE AND C.14.11 HA / 35 ACRES, KILLALOAN, CLONMEL, CO. TIPPERARY. €580,000 circa €16,500 per acre
Beautifully located residence and c. 14.11 ha/ 35 acres just 6km from Clonmel (N24). The lands are of top quality, free draining and south facing. Residence of c. 114 sq.m. and a second unoccupied residence in need of modernisation. Stone outbuildings and stables.
More information from REA Stokes & Quirke on

• +353 (0)52 6121788
• https://www.realestatealliance.ie/residential/brochure/killaloan-house-and-c-14-11-ha-35-acres-clonmel-tipperary/3823038

REA Leinster Auction Results

REA Leinster Auction had 15 properties in their November 22nd auction held at the Killashee House Hotel near Naas.
On the day, REA Leinster Auctions sold 11 of their 15 properties with 4 withdrawn, 2 of which are expected to be sold to highest bidders before the end of the week.
Best sellers on the day included three apartments at Centaur House in Carlow through REA Sothern which fetched on average 30% above reserve.
The next REA Leinster Auction is on the 15th December 2016 with ten lots booked in so far.
More info on https://www.realestatealliance.ie/auction/properties/951

INDUSTRIAL UNIT, TINVANE PARK SOLD AT AUCTION

INDUSTRIAL UNIT, TINVANE PARK, Carrick-on-suir SOLD AT AUCTION for €970,000 by REA Stokes & Quirke, Clonmel. This property was on the market for €440k and comprises of a very large warehouse unit on a site of circa. 12 acres. In shell and core condition the entire extends to c. 3,800 sq.m. (40,975 sq.ft.) and comprises of 4 warehousing units and 5 showroom units ranging in size from 706 sq.m. to 771 sq.m.
http://www.daft.ie/tipperary/commercial-property-for-sale/industrial-unit-for-sale/tinvane-park-pill-road-carrick-on-suir-tipperary-346624/

Finance for residential development key to solving supply shortage: REA

Available finance for residential development is the key to solving the housing supply shortage as home-building becomes potentially profitable, according to national estate agency group Real Estate Alliance.

Real Estate Alliance (REA) members are reporting a marked increase in sales activity across the country and not just in the major cities but also in provincial towns, the group’s AGM heard last week.

While Dublin and the commuter areas are starting to recover from the stagnation caused by the Central Bank’s mortgage deposit restrictions, the biggest rise in activity is being seen in Ireland’s smaller urban towns where the deposit requirement is not as significant.

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.

Eamonn Spratt of REA Spratt in Dungarvan was appointed chairman during REA’s AGM in Dungarvan last week where Frank Daly, chairman of NAMA, addressed the meeting on the future direction of NAMA and the current housing supply shortage.

“Throughout the country, our agents are seeing a definite rise in enquiries, with demand increasing further in quarter four,” said REA Chairman Eamonn Spratt.

“Our REA Average House Price survey saw the average three-bed semi rise above €200,000 in our Quarter Three survey – this level of return is now providing a catalyst to get dormant developers returning to the market with much-needed supply.

“Time taken to sell has reduced by two weeks to five weeks in country areas in the three months to the end of September and our agents are reporting a definite increase in mortgage approvals.

“The Central Bank mortgage deposit rules did not hit the country market as hard as the larger cities as the amount of the deposit required is less.

“For the first time in eight years, the majority of our offices are seeing builders looking for development land across Ireland.

“As well as available finance having a major impact on housing supply, a second hurdle is the provision of serviced land.

“Although buyers are now more plentiful on the ground, the problem of supply remains.

“Interestingly, our agents are now reporting that development land is returning to the market for sale, with builders showing much greater appreciation for the modern buyer's needs.

“REA agents are actively engaging with developers to advise as the requirements of new home buyers.

“We welcome the latest announcement by The Minister for Housing, Planning, Community and Local Government to fast-track the delivery of 30,000 new homes in urban centres across the country.

“In particular we are in favour of the fast-tracking of residential housing schemes and the identification of significant land holdings for potential development.

“Overall, we expect that the market outside Dublin will appreciate by circa 10% over the next year – greatly influenced by the lack of supply.

REA Munster & Connacht Auction

180 people registered for the REA Munster & Connacht Auction held at the Limerick Strand Hotel today. This auction offered a selection of residential and commercial properties and development land throughout Munster & Connacht. 79% of properties were sold at auction with the remaining properties presently under negotiation. Average prices exceeded 21% above the minimum Reserves, in particular there was considerable interest in one property, a partially completed development site in Cullen, Co. Tipperary that had a minimum reserve of €100,000 and sold for €180,000. There were multiple bidders on each of the properties indicating strong demand in the Munster/Connacht region. We have six auctions planned for next year with the first one to be held in February 2017, details to be posted online in the coming weeks.
More information contact https://www.realestatealliance.ie/branches/details/305286
353 (0)61 279300

7 LOTS FOR AUCTION - ROSCOMMON TOWN 2nd DEC.

FOR SALE BY PUBLIC AUCTION –  FRIDAY 2ND DECEMBER (Unless previously sold)
Carthys Bar, Roscommon Town @ 3 PM Sharp
7 LOTS OFFERING QUALITY,RESIDENTIAL,COMMERCIAL INVESTMENT OPPORTUNITIES
Lot 1
The Meadows, Scrine, Rahara, Co. Roscommon.
4 Bed Detached Home finished to an extremely High Standard internally and externally. Convenient to  Roscommon Town and Athlone. Comprising  Rec. Hallway, Sitting Room, Kitchen/Dining Room, Utility, W.C,  4 Bedrooms (1 ensuite) and a bathroom.
Pic
AMV:  €100,000
Lot 2
Patrick Street, Castlerea Town
Town Centre Commercial Property presented in  excellent condition and will be of interest to owner occupiers and investors. Property is ready for immediate use. Obvious potential for Residential Use.
AMV: €45,000
Lot 3
Fairymount, Castlerea, Co.Roscommon.
2.49 Hec/6.1 Acres with Outbuildings/Stable facilities situated thereon. Good Land and offers site potential subject to planning.
Pic
AMV: €40,000
Lot 4
Knockroe, Castlerea Town.
4 Bed Detached home situated in the much sought after area of Knockroe. Conveniently located to Train Station (Dublin/Westport Route), Schools, Shops etc. Kitchen/Dining Room, Sitting room, Utility Room, W.C, 4 Bedrooms & Bathroom.
AMV Range: €90,000 - €100,000



Lot 5
5 Riverwalk, Castlerea
Quality 1 Bed 2nd Floor Apartment situated within the rejuvenated Riverwalk Residential Development. Benefiting from its convenient proximity to shops, banks, schools etc. Currently tenanted and offering an income stream of €310 per month.
Pic
AMV: €40,000
Lot 6
Apt. 4 Stonecourt, Roscommon Town.
Excellent opportunity for first time buyers , retired couple seeking convenience to Town  amenities etc or investors interested in a property with strong rental demand .Presented in Good Condition. Living Room/Dining Area, Kitchen, Bedroom and Bathroom.
Pic
AMV: €50,000
Lot 7
3 Bed Detached House on c. 8.33 hectares (c. 20.5 Acres) of Agricultural Land with excellent road frontage offering future potential (Public sewer available)
Lot 1 Entire : 3 Bedroom Detached House on c. 8.33 hectares (c. 20.5 Acres)
Lot 2: 3 bedroom House on c. 4.1 Hectares(10.13 Acres)
Lot 3: 4.23 Hectares (10.45 Acres)of Land with excellent road frontage.
AMV: 125,000 (Entire)
If you cannot attend the Auction, you can arrange to bid by Telephone or by proxy.  Contact REA Seamus Carthy to pre register. +353 (0)90 6630001

LAUNCH: Churchfields Ashbourne.

LAUNCHING THIS THURSDAY AT 5PM – 7PM, FRIDAY 12 – 2PM AND SATURDAY AND SUNDAY 3-5PM

 CHURCHFIELDS, ASHBOURNE -  is a family focused development made up of 3, 4 and 5 bedroom homes located in the village of Ashbourne. 

·         Large, contemporary kitchens with high quality gloss doors and most with occasional dining areas (island or peninsula unit),

·         Bright, generous sized bathrooms, excellent storage space throughout,

·         9 foot ceilings at ground floor, modern internal doors and ironmongery,

·         large fully fitted premium quality wardrobes and well designed utility rooms. 

·         Energy efficient features include Photovoltaic Solar Panels and Demand Control Ventilation ensuring fresh air into your home without letting the heat escape.

·         High performance windows which are designed lower to the floor to maximise light in to the house.

Prices from €272,000

Please contact REA T&J Gavigan on 046 9023232 or joint agents Hooke & MacDonald Ph: 01-6318402 www.churchfields.ie

The Brexit Beater

Karen Litton is unique among Estate Agents in Ireland. Her story did not start here and like many of her clients she moved to Ireland from the UK. The daughter of a Donegal-Longford man her roots are firmly in Ireland to which she moved some eleven years ago. Having worked in Legal Administration and Property in the UK she automatically gravitated to property in Ireland and has gained significant and valuable experience in the profession while working in the Roscommon, Leitrim & Longford Region. She has held the position of Property Sales Manager with REA Brady in Carrick on Shannon since 2012.
That experience together with her English background has been particularly helpful in the past three years since UK buyers entered the Irish Property Market in significant numbers. Sharing her experiences of the same move with incoming UK buyers has made the experience simpler and more comfortable for UK residents who have the dream and ambition to move but sometimes struggle with the differing methods we have in Ireland. This help has resulted in exceptional sales success.
Karen’s UK buyers tend to purchase Rural Properties mainly. They are escaping urbanized Britain and are in Ireland to buy what they cannot buy in the UK, “A Private Rural Home”. Karen notes that despite the fact that Sterling has lost c.13% of its buying power against the Euro since Brexit her UK Buyers continue to come. She says “that’s because the disparity in values for rural homes in the UK versus Ireland is still massive. In the UK buyers are paying a “Rural Premium” of c.£40,000 over the cost of an urban home, the opposite been true in Ireland. An average rural home in the UK (inc. Scotland & Wales) sells for in excess of £250,000 (€282,000). The same would cost c. €120,000 in Karen’s Region, about 56% cheaper even after sterling has lost 13%. Even after the currency movement it still makes sense for UK buyers.”
Karen has infectious enthusiasm for her work and for the properties she sells. Her attention to detail in the preparation of her presentations of property is exceptional. Her wording in brochures reads well to her target audiences. Her results speak for themselves with flowers and Thankyou Cards frequently crowding her office. Karen is Property Sales Manager at REA Brady in Carrick on Shannon. She can be reached on 071 96 22444 or on karenl@reabrady.ie

Auctionroom reports another successful sale

REA Auction is delighted to announce another great result from their latest online auction; this time in Edenderry. The firm were selling REA Hynes who secured a sale on 15 St Bridget’s Street, a 2 bedroom detached house in need of refurbishment. Bidding opened at €18,000 and the reserve was met within 3 minutes when the reserve of €20,000 was achieved. By 5.30, bidding had exceeded €30,000 and by 8.30 the following morning, bidding was at €37,000. The auction was due to close at 12 noon when the property was at €49,000 however as bidding was still going, the action continued until 12.30. The final sale price REA Hynes achieved was €62,000 - an impressive 300% of the reserve for the property.

Commenting on the result, Healy Hynes had this to say. “The auctionroom.ie online platform allows buyers to make an offer even when ou office is closed. As a consequence, thy control the house buying experience. The transparency involved also helps buyers make offers with greater confidence that traditional private treaty or auction. We are seeing more and more interest in buying this way and intend to advise more of our clients to use this approach.

“This Edenderry house attracted a lot of interest; we had 35 bids in total from first time buyers, retirees and self builders. The result is a strong recognition of the continued upturn of the market as indicated by the latest REA survey.

“We are confident that this upturn will continu

e as there is still tremendous value to be had out there

Q3 Average House Price Survey Sept 2016

The average three-bed semi has risen above €200,000 for the first time since the country emerged from the property crash, according to a national survey carried out by Real Estate Alliance.

And with an increase of mortgage-backed buyers on the market chasing a limited supply, prices in Dublin have grown by +2.75% – almost double that of the previous three months.

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 to the end of Q3 this week.

The average three bed semi nationally now costs €200,093, an increase of €4,732 (+2.42%) since the end of June. This is a rise of 6.37% against the same time last year.

Prices in Dublin city grew by +2.75% to €373,333 since June – almost twice the growth experienced in the same area in Q2 as buyers chase a scarce supply of suitable housing.

In Dublin, one agent, Ed Dempsey in Clonskeagh, is reporting increases of €25,000 for sale prices over the past three months, with the average three-bed semi increasing by 5.49% from €455,000 in June to €480,000 now – a rise of 9.09% year-on-year.

Other Southside Dublin agents are reporting that the autumn market is stronger than Q2, with the lower and middle ends of the market beginning to move due to a release of pent-up demand.

Prices in the tier containing commuter counties and the main cities of Cork and Galway have risen by an average of just under €3,000 to €217,176 (+1.21%) while those in the rest of the country have increased by nearly €5,000 to €133,268 (+3.55%).

“We are seeing little or no increase in supply nationally, with an increase in funded buyers fueling the market in the short-term,” said REA Chairman Michael O’Connor.

“Many of our agents are now reporting some buyers are returning to the market having achieved a level of savings, and that there is an increase in mortgage-funded purchases.

“The average amount of cash buyers has fallen by 3% to 33% nationwide, but in Dublin city that figure is down by 7% in three months, with 72% of transactions now mortgage-funded.

“The early effects of the Central Bank restrictions had previously seen prices drop in the capital in the year to Q1 2016, but a combination of a longer time period to save and pressure on supply is manifesting itself in price growth.

“Our agents are also reporting that many first-time buyers seem to be holding fire in the hope of increased incentives in the upcoming budget.”

“The Central Bank’s mortgage deposit rules are still being keenly felt in the commuter areas, with most rises occurring in towns where three-bed semis are available for under the deposit threshold of €220,000

The immediate aftermath of the Brexit vote has had an effect in the north west where Donegal is the only county to register a three-month fall on -1.73%.

This has been most keenly felt in traditional holiday home spots such as Bundoran where the average three-bed semi has dropped by -3.41% in three months from 88,000 to 85,000.


Ends

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

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

REA Classic Homes

REA agents represent vendors across Ireland in the sale of all types of properties and land.
These include a large selection of classic homes ranging from beautiful country and coastal
homes, charming cottages and historic and vintage homes to luxury properties and modern
converted townhouses. Enhancing the profile of a property is vital in order to ensure a successful sale. REA agents are highly experienced in maximising the exposure of classic homes – and this brochure will give you a real insight into the beautiful homes we’ve sold
in the past and those currently available.

Contact your local REA agent to receive a free appraisal or email info@rea.ie
to register your interest and order the autumn REA Classic Homes brochure.

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 Auction Results 19th July 2016

REA Auction Results 19th July 2016

105 people registered for the REA Munster Auction held at the Limerick Strand Hotel today. The auction offered a selection of properties throughout Munster with a mix of apartments, 3 bedroom semi detached and terraced houses, some commercial units and land. Only one Lot remained unsold when the auction ended however, this property is now under negotiation and is expected to sell by close of business today. Sales prices exceeded Reserves by an average of 22%. 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 Monday, 12th September 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.”