The Real Estate Alliance (REA) average house price survey found that the average price of a three-bed semi-detached house now exceeds €400,000 in Dublin.
The average three-bed semi-detached in the capital now costs €404,167, a rise of €15,000 (3.9%) in the last three months and an increase of 12.8% over the past year, according to the survey. An equivalent house in Cork City has risen in value by 3.4%, to €305,000, over the same time period.
“There is strong demand with limited supply in mature and popular residential areas and at last we are beginning to see more activity in the construction of new homes,” said Michael O’Donoghue from REA O’Donoghue Clarke in Cork.
“We see a steady increase in values and the easing of the Central Bank lending rules and the Help to Buy scheme should have an effect in relation to first-time buyers.
“However difficulties will still remain for the second-time purchaser in relation to the 20% deposit requirement over €220,000.”
Nationally, the average semi-detached house now costs €209,944 — up 3.5% on the figure of €202,926 seen in the fourth quarter of 2016.
The average house price across the country has risen by 10.9% over the past 12 months.
According to REA, the biggest percentage increases over the past year came in “the country’s smaller rural towns situated outside of Dublin, the commuter belt, and the major cities”.
“Prices here rose by an average of 12.9% over the year, with a three-bed semi now costing €136,194 — an increase of 3% in the past three months,” said REA.
A three-bed semi in Galway now costs €132,000 (up 2.1% since December) and a similar house will sell for around €178,000 in Limerick (up 0.6%).
The largest growth in the country in the first three months was in Kilkenny City, where average prices jumped by 15.8% from €190,000 to €220,000.
“There has been a recovery in bank lending, which has been reflected in the purchasing end, but the accelerated figures in the Dublin market particularly show that we are moving into a vendors’ marketplace,” said REA spokesman Healy Hynes.
“However, we need to look at these figures in relation to the market where stock levels are at their lowest nationwide since January 2007.
“At a current average price of €136,194, and an annual compound rise of 12.9%, it will be 2021 at the earliest before it becomes economic to build outside the cities.”
Reacting to the survey, the Workers Party said the results reflect a “chasm” between average earnings and prices.
“The average cost of a house in Dublin has risen to €404,167. This is more than 10 times the CSO’s estimate of average household income in Dublin, at approximately €39,000,” said party representative Gavin Mendel-Gleason.
“The chasm between average earnings and average house prices shows once again that any attempt to solve the house crisis without massive State investment in public housing is bound to fail.”