‘It’s now cheaper to buy than to rent in the area’
THE price of the average three-bed semi in Dublin city has risen 2.75 per cent to €373,333 in the last three months, according to a national survey carried out by Real Estate Alliance.
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.
“Rents are continuing to increase and it is now cheaper to buy than it is to rent in the area,” said Anthony McGee, REA McGee, Tallaght.
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 in that area increasing by 5.49 per cent from €455,000 in June to €480,000 now – a rise of 9.09 per cent year-on-year.
“The autumn market is stronger than it was in previous years and there is a lot of demand, particularly in the lower and middle market, which is moving fast,” said Rory Crerar, REA Orchard, Rathfarnham.
The average three-bed semi nationally now costs €200,093, an increase of €4,732 (+2.42 per cent) since the end of June. This is a rise of 6.37 per cent against the same time last year.
Prices in Dublin city grew by +2.75 per cent 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.
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 per cent) while those in the rest of the country have increased by nearly €5,000 to €133,268 (+3.55 per cent).
“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 per cent to 33 per cent nationwide, but in Dublin city that figure is down by 7 per cent in three months, with 72 per cent 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 per cent.
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 per cent in three months from €88,000 to €85,000.
