The price of an average three-bed semi in Irish towns and cities rose by 17.59% in the first nine months of the year, according to a national survey carried out by Real Estate Alliance.
The Real Estate Alliance Average house index concentrates on Ireland’s typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.
Price increases in the commuter areas around Dublin are continuing to outstrip those in the capital as first-time buyers chase bargains priced at almost half of those in the metropolitan area.
Three-bed semis have seen a rise of 21.59% across the country over the past 12 months, while prices in Dublin city rose by 24.24% over the same period of time.
The average price of a three-bed semi is now 179,981 nationally including Dublin, an increase of 26,925 (17.59%) on the Dec 13 figure of 153,056.
And the average house has risen by 9,907 since the end of June, rising 5.83% in value across the country.
In Dublin city, the average three-bed semi has risen by 27,500 over the past three months to 375,833, an increase of 20.59% on the December figure of 311,667 and a 7.89% rise over the June figure of 348,333.
“Prices are continuing to rise at a pace in Dublin, but our agents are reporting that the panic buying seems have gone out of the market, with less people at viewings and houses taking a week longer on average to sell,” said REA CEO Philip Farrell.
“The three-tier market that REA surveys have identified is still continuing, with the commuter areas out side Dublin, and larger urban areas such as Galway and Cork growing at twice the rate in the first nine months (21.88%) than the rest of the country at 11.47%.”
In Dublin, the market shows no signs of dropping off, with prices increasing by almost 8% in the last three months, after rising by 12% in the first half of the year.
The average three-bed started off the year at 311,667 and now costs 375,833.
Both South Dublin and Lucan recorded rises of 15.38% over the past three months alone, with houses in the west Dublin town rising by 40,000 to 300,000 in 12 weeks.
REA agents in Lucan are reporting that the market appears to go through a frantic two or three weeks, before slowing down and spiking again.
Although the rate of increase has slowed after a meteoric rise in Tallaght, the price of a three-bed semi in the Dublin 24 suburb has increased by 37.5% since the start of the year, and 10% over the past three months.
“Increasing rents and a shortage of supply are seen as the main drivers in increasing prices in this area,” said Philip Farrell.
The average property is now taking just seven weeks to sell nationwide, on average over 41% quicker than six months ago.
However, Dublin has seen an increase in time to sell, with houses now taking five weeks on average to close, up from four in June.
“Our agents are reporting that there are more private houses now for sale, which is giving the discerning purchaser a better choice and as a result there is not the same amount of bidders as there were in the first six months of the year,” said Philip Farrell.
There has been a sharp rise in the amount of private homes for sale nationally, with the percentage of distressed properties on the market dropping for the first time in the life of the survey.
Just 37% of properties on the market are now distressed, down from a yearly high of 45% in June.
There is further evidence that the banks are financing house buyers to a greater extent with the amount of cash transactions dropping from an average of 66% in December 13 to 50% in September 2014.
“We have seen a marked increase in mortgage transactions in Dublin to 56% of all sales, with 62% of sales in the commuter areas being financed by the banks,” said Philip Farrell.
“We are also seeing investors being influenced by the end of December deadline for obtaining capital gains tax relief over the next seven years.
“We also feel that the recent proposals on mortgage finance announced by the Central Bank could have a direct impact on the market from January 2015.”
Real Estate Alliance (REA) is Ireland’s leading property group of Chartered Surveyors with over 50 branches nationwide, comprising many of the country’s longest-established auctioneers and estate agents.