The Society of Chartered Surveyors Ireland (SCSI) Annual Residential Property Review and Outlook Report reveals that estate agents across the country believe that demand will increase across all property types with national house prices anticipated to increase by 4% in 2019.
The report expects Connacht prices to increase by 5% in 2019, down from 8% as reported in 2018.
Among the key findings in Connacht and Ulster:
* Owners of 3-bed semi-detached houses in Connacht and Ulster are likely to see the highest price growth this year, with estate agents predicting a price increase in value by 6%.
* Within the region, 47% of agents expect to market new homes in 2019, compared to just 23% in 2018.
* Over 80% of SCSI agents in Connacht and Ulster indicated that vendor expectations increased in 2018.
* The SCSI report highlighted that the ageing population growth is leading to a changing profile of buyers and the need for smaller but a more age-friendly housing supply.
* The report reveals 90% of SCSI agents expect prices to rise in 2019, none of whom are expecting prices to fall, marking an increase on expectations last year.
Enda McGuane, MD, Winters Property and SCSI Western Representative, said: “This is a very timely report coming as it does when the North West Regional Assembly is preparing a Spatial and Economic Strategy for the region. The report highlights the growing demand for affordable residential properties both in Galway City and in other urban centres like Sligo, Athlone and Letterkenny. In addition, it reinforces the opportunity that exists for the rejuvenation of small town centres as outlined previously by the SCSI and as enshrined in the National Development Plan”.
On the rental front, landlords exiting the sector in all areas is ranked in the top three issues facing the market by three-quarters (72%) of respondents. 78% of agents reported an increase in tenant demand in the past 12 months which reflects the supply and affordability problems that many people face in relation to house purchase. Rents are expected to rise by an average of over 8% across all segments of the market, ranging from 7.9% for 2-bed townhouses to 8.5% for 4-bed semi-detached houses.
Over 486 Estate Agents, Auctioneers and Chartered Surveyors around the country took part in the survey in late November/early December 2018.