Growing gap in cost of home in cities and rural areas

The average semi-detached house nationally now costs €188,370 but there is a growing disparity between the cost of a home in cities and those in rural areas.

A typical family home costs €357,500 in Dublin and €285,000 in Cork City while the same type of property can be bought for €82,500 in Donegal.

The latest REA Average House Price Survey reveals that while prices have stalled or fallen slightly in Dublin, they have risen elsewhere.

The price of the average three-bed semi detached house in Cork City has risen by 3.64% to €285,000 in the last three months, the nationwide survey has found.

REA agents in Cork city are predicting a further 7% rise in prices in 2016, after 7.55% was added to the value of the average three-bed semi in 2015.

“There is still strong demand with limited supply in mature and popular residential areas and very little activity with regard to construction of new homes,” said Michael O’Donoghue from REA O’Donoghue Clarke in Cork city.

“We see a steady increase in property values as a result of low supply and high demand. However the Central Banks rules will continue to hamper the construction of new homes to satisfy the first-time buyer market as builders will not build while this is in place.

“Lending to developers is at an all-time low so this is something that needs to be reviewed in the new year.”

The price of the average three-bed semi detached house in Co Cork rose 1.25% to €121,500 in the last six months. REA agents in Co Cork are predicting a further 7% rise in prices in 2016, after 13% was added to the value of the average three-bed semi in 2015.

“Overall prices remained static in the fourth quarter on 2015 and we are still experiencing good level of activity,” said John O’Neill from REA Celtic Properties in Bantry. “Even at the end of the year overseas buyers were active in the market.”

The average semi-detached house nationally now costs €188,370, the Q4 REA Average House Price Survey has found – a slight rise on the Q3 figure of €186,102.

Prices in Dublin city and county fell by 0.75% in Q4, while Dublin city alone fell by 0.69% – the average three-bed semi now costing €357,500.

However, the biggest growth was in the rest of the country outside the commuter belt and larger cities, where house prices increased by 0.95% in the last three months.

The lack of suitable supply is the biggest influence on the property market, according to REA Chairman Michael O’Connor.

“Prices are only increasing in areas that are offering people the accommodation that they require,” he said.

“People may want to buy housing, but if suitable properties are not available, they will not buy.”

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