Over €7bn spent on residential property sales in first six months of 2019

There was a significant increase in the number of residential property sales in the Dublin commuter belt in the first half of the year.

However, sales in the capital have declined in the year to date, according to a new analysis of the market by MyHome.ie.

The property website issued a new analysis of residential property sales in the first half of 2019, using data recorded by the CSO in the Property Price Register.

It shows that the number of sales nationally increased by 1.2% in the first six months of the year in comparison to the same period in 2018.

There were 25,192 sales in that period, up from 24,882 in January-June 2018. In total, more than €7.2 billion was spent on residential property sales in the first half of the year.

Much of the increase is driven by Leinster, where both the value and the number of transactions increased.

This included a 22.6% increase in the number of sales in County Louth, while the value of transactions in the county increased by 28.6% too.

In Kilkenny, the number of sales rose 20.4%, while the value of transactions was up 23.5%, while in County Laois, there was a 15.1% increase in the number of sales, with the value of transactions increasing by 24.8%.

There was an even split in sales volume across the country, with 13 counties reporting a rise in figures and the same number experiencing drops when compared with 2018.

The market was healthier with regard to the value of transactions, with just six counties across the country reporting a negative figure compared with the first half of 2018.

Kerry had the sharpest fall in sales, with the number of transactions down 22.8% on a year previous, though this was largely down to a technicality as three bulk transactions of more than 70 properties were recorded as one sale.

Dublin, which is responsible for around one-third of the property market, led the way in the first six months of the year with 8,051 sales – a decrease of 2.9% on the same period last year.

The capital was followed by Cork with 2,828 sales; Kildare with 1,447; Galway with 1,187; Meath with 1,130; and Wexford with 898.

Angela Keegan, myhome.ie managing director, said the rise in activity in commuter counties reflects the significant demand that is evident around Dublin: "The rise in activity in the commuter counties emphasises the relative affordability of good properties in these areas, particularly in the context of the Central Bank’s mortgage lending rules of three and a half times’ the buyer’s income."

This has been complemented by a major boost in new home building in these counties, which has been beneficial for first-time buyers and indeed the property market as a whole, offering supply where it is much needed.

The MyHome study followed the latest house price report from property website Daft.ie.

The Daft report noted that house prices in the third quarter of 2019 were just 0.1% higher than a year previously, with six years of consecutive growth slowing significantly.

The average price nationwide in the third quarter of the year was €257,000, down just more than €4,000 on the second quarter of the year.

Compared to its lowest point of the market in 2013, the average price nationwide is now 57% higher. It is still one-third lower than the peak in 2007, though.

The number of properties available to buy on the market nationwide was just under 25,000 in September, largely unchanged from a year ago.

This breaks down differently across the country, however, with availability up year-on-year in both Dublin (1.9%) and the rest of Leinster (4.5%) but down in Munster, Connacht and Ulster by between 3-5%.