Statement by Marian Finnegan, Managing Director, Sherry FitzGerald.
July 3rd, 2023
Sherry FitzGerald, Ireland's largest estate agent, announced today (July 3rd) that the average value of second-hand homes in Ireland recorded a 1.3% increase in the second quarter of 2023. This growth contributes to a rise of 2.1% in the first half of 2023, and 3.4% over the past twelve months.
Average values in Dublin grew by 0.7% in the quarter, bringing growth to 1.5% in the first six months and 2.4% in the twelve months.
In line with recent trends the rate of price inflation outside of Dublin exceeded that of the capital. Average values outside of Dublin grew by 2.0% in the quarter, resulting in a cumulative price growth of 3.0% in the first half of 2023 and 4.6% annual price growth.
Nationally, the Mid-West and West regions recorded the strongest price growth, with annual growth rates of 9.6% and 7.0% respectively.
Commenting on the latest analysis, Marian Finnegan, Managing Director, Sherry FitzGerald said; “The evidence available continues to suggest a return to more normalised levels of growth in the residential property market. The increase in average values of second-hand homes by 3.4% in the year, indicates that the market is stabilising after a period of strong inflation. Furthermore, this is particularly notable in the Dublin market, which recorded growth of 2.4% in the past twelve months.”
A review of transaction activity in the first quarter of 2023 revealed that sales volumes continue to surpass pre-pandemic levels. Excluding block sales and new homes acquired for social housing, approximately 12,500 housing transactions were recorded in the first quarter of 2023, as per the Property Price Register (PPR). This represents a 2.0% increase compared to the same quarter in 2022 and an 11.3% increase compared to the opening quarter of 2020, just prior to the pandemic.
In the second-hand market, activity remained steady, with approximately 10,600 units sold, in line with 2022 figures. Dublin and the regional centres exhibited robust second-hand activity, with Dublin experiencing a 16.9% increase in transactions compared to the first quarter of 2022. Cork, Limerick, and Galway also reported increases of 10.6%, 5.7%, and 3.5% respectively.
The new homes market displayed continued growth in transaction activity during the first three months of 2023, recording an 11.3% increase. The Greater Dublin Area (GDA), encompassing counties Dublin, Meath, Kildare, and Wicklow, accounted for the majority of new home sales. Notably, the surge in new home sales was primarily driven by a 34% increase in Co. Kildare compared to the same period in 2022.
Despite the positive increase in new home sales, the challenges faced by the sector in 2022, such as the rising cost of materials, may impede further significant growth in the short to medium term.
Furthermore, the exodus of landlords from the market has continued throughout 2023. In the first six months of the year, only 12% of purchasers of second-hand homes through Sherry FitzGerald were investors, while 35% of vendors were investors selling their properties. This data would suggest a net loss of just approximately 6,000 tenancies from the rental market in the first six months of 2023. It highlights the urgent need for targeted measures from the government in Budget 2024 to address the ongoing emergency in the rental market.
In conclusion, Marian Finnegan, Managing Director, Sherry FitzGerald stated, “The analysis of the first six months reveals a return to a more normal level of price inflation in the residential market. This comes after two years of heightened inflation in the post- COVID period.
However, the underlying challenges in the residential market remain, including the risk surrounding output in the new homes sector and a further net loss of 15,000 units from the private rental market. Therefore, urgent policy changes are needed to address both the immediate and long-term challenges in the lettings market in order to stablise the emergency in the rental sector.”
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For any further information, please contact:
Jill O’Neill Marian Finnegan
PR Director Managing Director, Residential & Advisory
Sherry FitzGerald Group Sherry FitzGerald Group
Ph: 01 2376 500 / 086 252 3277 Ph: 01 237 6341 / 086 814 8251
