- The average value of residential property in Ireland rose by 4.5% in the second quarter of 2014; this brings the growth in the year to date to 9.8%.
- Residential property in Ireland increased by 15.7% in the twelve months to June 2014.
- Notably Dublin house prices rose by 5.8% in the second quarter of the year, this brings the growth in the year to date to 12.6%.
- Residential property in Dublin increased by 21.2% in the twelve months to June 2014.
- When Dublin is excluded from the national figure, the quarterly growth figure was 2.8%. Residential property outside Dublin was up 8.7% in the twelve months to end June 2014.
- While owner occupation still dominates the purchaser profile at 73%, investors now account for 19% of all purchasers in the opening six months.
- The latest Sherry FitzGerald Property Sentiment index shows a notable uplift in consumer sentiment in the residential market with almost three quarters of respondents expressing a wish to buy a residential property in the next six months.
- Also of note is the fact that almost 80% of respondents feel prices are increasing while approximately 80% also suggest that there are not enough properties available for sale in their price range.
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Commenting on these results, Marian Finnegan, Chief Economist, Sherry FitzGerald Group said;“The residential market has continued on its path to stability during 2014 with a notable uplift in activity and price inflation. The
Dublin market continues to lead the recovery, with annual price inflation now running at 21.2%. The other regional centres are also experiencing strong price growth, notably the Cork city market saw prices increase by 14.8% in the twelve months while Galway City recorded growth of 14.2% in the same period.
It is worth noting that transaction activity increased in all counties in the opening quarter of 2014, an indicator that the recovery is becoming more broad-based. Overall the volume of transactions has increased by 37% in the opening quarter when compared to the same period in 2013.
While owner occupation still dominates the purchaser profile at 73%, investors now account for 19% of all purchasers; compared to 13% in the same period in 2013. This increase in investor activity is likely to continue and perhaps even increase as the year progresses given the expiration of the CGT incentive at the end of the year. That said, 32% of vendors in the year to date were selling investment properties; an indicator of the depletion in rental properties on the market, a factor which is underpinning rental inflation.
Looking to the future, sentiment in the market has improved notably in the past twelve months in particular, with three quarters of all respondents to the latest Sherry FitzGerald Property Sentiment Survey expressing a wish to buy in the next six months. Furthermore, eight out of ten respondents believe that prices are increasing, compared to a low of only 1.5% of respondents two years ago. The combination of this uplift in sentiment, the latent demand from the inactive market between 2007 and 2012 and the continued shortage of property available for sale all point to a period of above trend price inflation in 2014. Current indications suggest that the Irish market will increase by 15-20% during this calendar year, with the regional centres all enjoying the strongest levels of price inflation.
For any further information, please contact;
Sherry FitzGerald Group
Ph: 01 237 6341 / 086-814-8251