Average cost of an Irish three-bed semi is just over £200,000
In places like Galway there’s ten buyers for every property while Cavan has seen the biggest jump of all
The average cost of a three-bedroom semi-detached house in Ireland is €229,111 (£200,607), according to the Real Estate Alliance (REA) Average House Price Index for the first three months of 2018. It marks a rise of 1.5 per cent on €225,806 average price recorded in the last quarter of last year.
The rate of increase in the cost of a three-bed semi-detached house in Dublin slowed to 0.5 per cent in the first quarter of this year. After rising by 12.5 per cent in 2017, the average price in the Irish capital has increased by just €2,000 in the opening quarter and now stands at €440,000 – exactly twice the Irish Central Bank’s €220,000 mortgage deposit threshold.
The index concentrates on the actual sale price of Ireland’s average home, a three-bed semi, giving an up-to-date picture of the property market in towns and cities nationwide to the close of last week. The rate of increase in three-bed semi-detached home prices in Dublin has slowed to 2 per cent over the last six months, compared to an increase of 4.5 per cent in the opening three months of last year. Most REA agents in the capital reported that prices in Dublin’s postcode zones have been static in the first three months of the year. The only reported rises were in areas such as Dublin 24 (+2 per cent to €260,000) and Lucan (+2 per cent to €352,000).
REA spokesperson Barry McDonald said: “What we may be seeing, after the rapid increases of recent years, are the Central Bank mortgage lending restrictions imposing an upper level on purchasing power for some buyers.
“The Dublin market has become quite price sensitive, even though we are seeing healthy demand and good liquidity with plenty of mortgage lending,” said Mr McDonald. “What we may be seeing, after the rapid increases of recent years, are the Central Bank mortgage lending restrictions imposing an upper level on purchasing power for some buyers.
“There has been a 3 per cent reduction in cash buyers in the market, with mortgage approved house hunters now making up 74 per cent of purchasers, increasing the effect of the Central Bank rules on the market.
“We are seeing strong demand across the board, and homes are reaching sale agreed in just four weeks in Dublin – which is good news for both buyers and vendors. “Combined prices in Dublin city and county rose by just 0.7 per cent to €408,500, driven by increases in north county areas Skerries (+2.8 per cent €365,000) and Balbriggan (+1.9 per cent €265,000), with prices being seen as more affordable than the city.”
He said many Dublin homes reach ‘Sale Agreed’ within four weeks. Combined prices in Dublin city and county rose by 0.7 per cent to €408,500, driven by increases in north county areas such as Skerries (+2.8 per cent to €365,000) and Balbriggan (+1.9 per cent to €265,000). Overall, the average house price across the country rose by 9.1 per cent over the past 12 months, compared with an 11.3 per cent overall rise in 2017.
The commuter counties continued their recent steady growth with a 1.4 per cent increase in the first three months of 2018 – the average house is now selling for €235,900, a rise of €3,000.
The country’s major cities outside Dublin recorded a combined rise of 2.1 per cent in the first quarter of the year, with an average three-bed semi-detached house costing €243,750. Limerick city saw a 4.2 per cent rise, with prices increasing from €192,000 to €2000,000 since December.
Selling prices in Galway city rose by 2.9 per cent, where the typical semi-detached house now costs €265,000 and there are ten buyers for every property. Cork city saw a €5,000 (1.6 per cent) increase in the same period, the average price to €315,000. In Waterford City the average price remains at €195,000.
The rest of Ireland saw a 2.9 per cent rise to €150,050 while the highest annual rate of increase in Ireland was in Cavan town, where prices rose by €10,000 to €150,000 – a change of 33.9 per cent compared to a year ago when the price was €112,000. Mr McDonald said there is strong competition between owner occupiers and buy-tolet investors in a rising rental market.
“In Laois, we have seen rises of 6 per cent in the opening quarter based on lack of supply and prices at €175,000 which are attracting the commuter market.
“In commuter counties such as Kildare, the biggest percentage rises are coming in towns such as Newbridge (2.3 per cent) which recorded double the increase of Naas (1.1 per cent) because at €225,000, property is nearer to the Central Bank’s deposit threshold,” he said.
• The number of house sales in Ireland rose from 15,058 in 2016 to 17,491 last year, an increase of 16 per cent, according to a new study carried out by Irish property website My-Home.ie based on its own analysis of the Property Price Register.
The total value of transactions for the year was also up, rising by 21 per cent to €7.4 billion. Ireland’s gross domestic product (GDP) grew 7.8 per cent last year, technically making it the European Union’s fastest-growing economy for the fourth year in a row.
The accuracy of GDP was queried when Ireland’s 2015 growth figures had to be adjusted upwards after a major revision to the stock of capital assets owned by large multinationals based in the country.
Nevertheless there was very strong growth in the real economy. Last year Ireland’s economy expanded by 3.2 per cent on a quarterly basis from October to December, compared with 4.8 per cent in the previous quarter.
Domestic demand rose by 3.9 per cent in 2017. Unemployment fell to 6.1 per cent from a crisis peak of 16 per cent just shy of the 2007 peak of 2.23 million at the end of 2017 following a sharp rise in jobs growth in the fourth quarter.