Survey shows 'three-tier' property market

A new survey shows evidence of a three-tier property market in existence in Ireland.

The Real Estate Alliance Average House Index reveals a shortage in supply of starter homes in the commuter belt and large urban areas.

It also shows price increases for houses in the commuter counties around Dublin and in other large urban areas have outstripped those in the capital for the first six months of the year.

The index says the price of an average three-bed semi in Irish towns and cities has risen by 11.12% to €170,074 since the end of December.

In Dublin city, the average price of a three-bed semi is €348,333, 11.76% up on the December figure of €311,667.

Philip Farrell, the CEO of the Real Estate Alliance said the three tiers were:

- The greater Dublin area (25%-27% of the population);

- The commuter belt and the large urban areas such as Cork and Galway;

- Rural Ireland

He said prices in rural Ireland were increasing by about 5%, but wre in a lot of areas static.