Non-household sector 'a significant actor' in residential property market, says report

Non-household sector 'a significant actor' in residential property market, says report

More than one-sixth of all residential property bought in Ireland in 2018 was purchased by non-households.

The latest CSO Residential Property Price Index has shone a light on the changing nature of the Irish property market, with non-households becoming an ever more significant part of the market.

They include private companies, charitable organisations and State institutions, including the likes of approved-housing bodies and local authorities.

The non-household sector is "a significant actor in the Irish residential property market", according to the CSO report, which notes that the volume of purchases and sales by non-household actors has increased annually since 2011, with the exception of 2016.

In 2018 the total residential property market comprised of 53,644 dwelling purchases with a value of €15.3 billion.

Of these, the non-household sector made up 9,145 purchases, or 17% of the total market, with a total value of €2.4 billion. This is up from just 760 non-household purchases in 2011.

The non-household sector also sold 16,692 dwellings on the market last year at a total value of €4.9 billion.

Within the non-household sector, public, education and health bodies were the most active.

They purchased residential dwellings worth €707.6 million.

This includes State and semi-State agencies, including local authorities and approved housing bodies, but also private companies within the education and health sectors.

Of the non-household actors, 87.6% were Irish registered companies.

The Property Price Index shows that house prices are continuing to rise nationally, though inflation is slowing.

Residential property prices increased by 3.1% in the year ending April 2019, according to the report. In contrast, the year ending April 2018 saw an increase of 13.3%.

This is the lowest rate of price growth since the recovery began in 2013.

Dublin is experiencing much slower inflation than other parts of the market. Prices grew by 0.5% in the year ending April 2019, with this rise mainly driven by apartment prices.

Some parts of Dublin, including Dun Laoghaire-Rathdown, actually declined in the last 12 months, though they remain among the most expensive in the country.

Excluding Dublin, prices were 5.6% higher in the year to April, with the Border region increasing by 11.4%, the largest increase in the country.

Median prices are now 18.5% lower than their highest level in 2007 and are 81.9% higher than their lowest level in 2013.

There were 3,306 purchases filed with Revenue in April, a 4.3% increases versus the same month in 2018. Just 603 of these were for new properties.

First-time buyers accounted for 30.7% of purchases, with non-occupiers accounting for 17.1%.

Revenue data shows that there were 1,005 first-time buyer purchases in April - an increase of 5.7% on the 951 the same time last year.

The median price nationally was €250,000. Dublin was the highest at €366,000. In Cork county, this was €242,000 and Cork city, it was €241,000.

By Eircode, Blackrock A94 was the highest median in the country at €620,000. All 10 of the most expensive Eircodes were in Dublin.

Outside the capital, A63 Greystones at €442,500 is the highest and, in Cork, Kinsale P17 is the most expensive at €334,999.

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