Average semi-detached sells now for €350,000

By Echo Reporter

THE price of an average three-bedroom semi-detached house in South Dublin has risen by 2.19 per cent to €350,000 in the last three months, according to a national survey carried out by Real Estate Alliance.

The REA Average House Price Index 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.

“We feel that the Central Bank’s continued restrictive lending criteria are having the continued desired effect on property values,” said Paul Grimes from REA Grimes on Fitzwilliam Square.

“However, it is clear that there are many young families seeking to purchase theirfamily home as opposed to continue renting.

“The increased rental pressures will continue until such time as these restrictive lending criteria are eased up somewhat.”

“We are seeing a slight improvement in the market. Due to lack of supply, prices are going up with demand. There is a lot of demand for properties around €600,000,” said Ed Dempsey from REA Ed Dempsey in Dun Laoghaire.

“There are no 25- to 40-year-olds in the area, only people trading up or down, with people finding it difficult to trade down,” said Rory Crerar from REA Orchard in Rathfarnham.

“Many investors are looking to sell and there is a strong first-time buyer market, but few investors are looking to buy, even with increasing residential rents,” said Anthony McGee from REA McGee in Tallaght.

A nationwide supply shortage has fuelled a rise of over 2 per cent in the price of the average house in the last three months, with the majority of counties in the State recording price increases in Quarter Two this year, the latest Real Estate Alliance Average House Price Survey 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 per cent ) since the end of March. This is a rise of 4.49 per cent 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 per cent 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 per cent) while those in the rest of the country have increased by over €3,000 to €128,768 (+2.75 per cent).

Three-bed semi prices in Kilkenny city rose by €20,000 or 12.5 per cent in the past three months, a figure that is entirely driven by record low supply

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