Irish households quitting Brexit Britain ‘helping to cause house price inflation in Ireland’
Ireland seeing a surge in so-called property ‘millionaires’
Irish households fleeing Brexit are helping to drive house price inflation in Ireland, according to the author of a new Wealth Report.
Rampant property inflation in some parts of Ireland now means that over the past five years many houses are earning almost as much as an average yearly UK wage – or more.
The figures, compiled by the country’s leading website with an obvious vested interest in the sale of properties, says the last five years have seen an explosion in Irish property ‘millionaires’.
The report says rising property prices and shortage of supply means there has been an increase of almost 20 per cent in the number of property ‘millionaires’ in just one year or “in other words, rising property prices over the last year have created more than two new property millionaires every day”.
Across Ireland house price inflation is running at 7 per cent and 8 per cent at the very top of the market.
The author of the report, Economist Dr Ronan Lyons, said at the weekend: “At least some of this push at the top end of the market is Brexit-induced.
“Anecdotally, architects will tell you stories of couples returning from London with a seven-figure budget buoyed by the extraordinary level of prices in the British capital.
“On top of that, it seems clear that any Brexit dividend in terms of Foreign Direct Investment (FDI) jobs will be at least as large in the tech sector as in financial services.
“The on-going uncertainty around the nature of Brexit has meant that the ‘born online’ firms – most of which have large operations in both Dublin and London – are favouring the Irish capital for new projects.
“This stems from an uncertainty about whether their highly skilled and very multinational workforce will be able to enter and stay in the UK, once it leaves the EU.
“Ireland has remained explicitly open for business – issues around housing and visas aside – and that certainty appears to be reaping rewards.”
He added: “The market for Ireland’s most expensive homes is booming currently.”
“Housing wealth is accelerating fastest in a number of markets in the greater Dublin area, both central, such as Dublin 1 and Dublin 10, and further out, like Westmeath and Louth. This highlights that access to employment, and other urban amenities, is still front and centre for those looking for a home.”
Every week at least fifteen properties worth over €1 million are sold in Ireland, says the Daft.ie in its Wealth Report which says that to date there have been 266 sales of properties worth more than €1 million.
The survey says Sandycove on Dublin’s southside is the most expensive place to buy with an average asking price of €910,000. But down the road on Eglinton Road in in Donnybrook in Dublin 4 five homes sold for €3.5m each in the last year and a half.
Dalkey, which neighbours Sandycove, has an average asking price is just under €760,000 giving it the highest concentration of property ‘millionaires’ at 609 in total. It is followed by Blackrock (576) and Rathgar (551). Average asking prices in Mount Merrion and Foxrock are €821,000 and €818,000 respectively.
Outside Dublin, Enniskerry, in Co Wicklow, is the most expensive market with average prices of €648,000 and includes 2018’s most expensive house so far this year, the seven bedroomed Luggala in Roundwood, which belonged to the Guinness family for €28m.
The Daft.ie report says that so far this year Ireland has 4,583 property ‘millionaires’ compared to 3,821 last year, an increase of 762 in a year.
The average asking price across Ireland is €247,000 with the cheapest places to buy being Roscommon and Donegal.
The average asking price for a home in Ballaghadareen, Co. Roscommon is €89,000 and in Bundoran, Co. Donegal it is €90,000. But prices in central Dublin and in so-called dormitory towns or suburbs outside Dublin – like counties Louth and Westmeath have been showing sharp rises is asking prices and values as people look for affordability within reach of jobs in and around Dublin.
In Munster, the most expensive place to buy a home is Kinsale in Co. Cork with prices averaging at just under €370,000. Salthill in Galway is the most expensive location in Connacht region with an average asking prices of €345,000.
Meanwhile, another report says property prices in Ireland are the fourth fastest rising in the world.
The Knight Frank Global House Price Index for the first quarter of this year says Irish property prices rose by 12.7 per cent in the year to March 2018, behind only Hong Kong (+14.9 per cent); Malta (+13.6 per cent) and Iceland (13.2 per cent).