One of Ireland’s leading estate agents says the country’s property market shows every sign of being in crisis as the the number of properties for sale has slumped to a record low.
It said its own House Price Index for the first quarter of this year showed the average value of residential property in Ireland rose by 1.3 per cent, bringing growth in the twelve months to the end March to 3.5 per cent.
In that time the average value of residential property in Dublin rose by 0.7 per cent up by 1.2 per cent in twelve months. The quarterly national growth figure excluding Dublin was 2 per cent, or 6.8 per cent on an annual basis.
Growth was strong in Cork where prices rose by 2.5 per cent in the quarter and by 8.8 per cent in the year.
Sherry FitzGerald said that the figures “mask the true dysfunctional nature of the market,” which “will only get worse”.
The auctioneers said the number of properties available to sell had fallen to the lowest point on record with just 1.4 per cent of the private housing stock for sale in January, down by 13 per cent on January twelve months earlier.
In Dublin just 0.8 per cent of the private housing stock is on the market, while supply is also “incredibly low” in other regional centres, it said.
Meanwhile, a report by property website daft.ie says the number of homes for sale is at its lowest level in nine years as a chronic shortage of new housing bites.
The Daft.ie quarterly house price report said prices stalled in Dublin but continued to rise by close to 10 per cent a year outside the capital.
The report says prices rose by almost 6 per cent nationally in the year to the end of March. Prices in Dublin rose by less than 1 per cent but by more than 9 per cent in the rest of the country.
The report says house price inflation on average is slowing, and is less a factor than it was three months ago. Cities outside Dublin have the strongest growth in prices.
It said prices have started falling in some of the most in-demand areas of south Dublin. In Limerick and Waterford prices were up by 18 per cent compared to a year ago.
Prices in Cork and Galway were between 14 per cent and 15 per cent higher, in Leinster prices were up 8.3 per cent and more than 10 per cent in Connacht and Ulster.
T he national average price in the first quarter of the year was €210,000, compared to €198,000 a year ago. This varies from an average of more than €500,000 in south county Dublin to €113,000 in Roscommon.
“Across Munster, Connacht and Ulster, there were 13,500 homes for sale, compared to almost 21,000 two years previously,” said Daft.