Majority of surveyors believe that home prices have peaked

Members of the Society of Chartered Surveyors Ireland expect residential property prices to increase by an average of 1% this year. 

A majority of chartered surveyors believe that residential property prices have either peaked or will level off soon, but that housing supply remains a persistent issue, a new report has found.

In its Residential Property Review and Outlook for 2024, the Society of Chartered Surveyors Ireland (SCSI) have said that its members expect residential property prices to increase by an average of 1% over the course of this year.

A survey of SCSI members found that 63% believe prices are either at peak or close to it and will level off soon. It found that the main factors influencing expectations of house-price movements are  supply, interest rates, and changes in the economy.

However, supply remains a persistent issue, with 76% of members reporting a shortage. That's an increase of 10% compared to 2023.

John O’Sullivan, chair of the SCSI's practice and policy committee, said that  after several years of rising house prices, it "looks now as if prices are set to consolidate for the medium term".

"Prices are levelling off below current inflation rates and this is a welcome development for potential buyers, as their purchasing power will increase as affordability improves." 

The SCSI also found that BER ratings are becoming more important to prospective purchasers, with 69% of members saying they believe it is influencing the level of offer made on a property.

Meanwhile, a separate report, by GeoDirectory, showed  that 28,000 residential buildings were under construction in Ireland at the end of last year, representing a 3.5% increase year on year, as supply ramps up to meet chronic demand amid a housing shortage.

In its latest residential-buildings report, GeoDirectory, the database of dwellings in the Republic of Ireland, also found that the number of vacant and derelict properties dropped marginally.

Dara Keogh, chief executive of GeoDirectory, said the decline in derelict properties indicates that "efforts and policies to bring these units into the housing stock are having an impact".

More than 81,400 residential properties in the State were recorded as vacant last month, resulting in a national average vacancy rate of 3.9%, down 0.1% year on year.

During this time, nearly 29,000 new residential-address points were added to the GeoDirectory database, an increase of 0.8% compared to the same period a year earlier. However, experts have argued that while supply is increasing, at least 30,000 units are needed to satisfy growing housing needs across Ireland.