Up, up, up…to almost €200,000 a house

 

 

Four-bedroomed houses in Roscommon are now averaging almost €200,000, according to new survey…

 

The average price for a four-bedroomed house in County Roscommon in the second half of 2017 was €196,667.

  The average price of a three-bedroomed semi-detached residence in the county over the same period was €128,334.

  These figures are contained in the latest Residential Property Price Barometer provided by the (IPAV) Institute of Professional Auctioneers & Valuers.

  According to the figures, Sligo experienced the fastest pace of growth in the second half of 2017 with a 25.26pc increase over the year, bringing the price of a 3-bed semi there to €145,000.

  Outside of Dublin, 12 counties experienced double digit growth in the second half of the year. The pace of growth slowed considerably in a number of Dublin areas, including Dublin 3 and 4 but five areas – Dublin 1, 2,6,7 and 9 saw double digit growth.

  In Dublin, the price of a 3-bed semi now varies from €290,000 in Dublin 24 to almost 3.5 times that in Dublin 4 at €987,000. In Cork city the price is €273,000 and Galway City €268,000. In terms of the Dublin commuter belt, Kildare is growing at the fastest pace, way ahead of other commuter counties at 16.7pc in the second half of 2017. This brings the average price of a 3-bed semi in the county to €280,000.

  Commenting on the figures, Pat Davitt, Chief Executive of IPA said that economic growth spreading to the regions would appear to be responsible for the faster pace of growth in house prices for the second half of 2017.

  He added however that much of the growth is coming from a low base, with many properties still selling for less than the cost of building them.

  Mr. Davitt added: “In overall terms the lack of supply remains the biggest problem. Latest data from Goodbody indicates that last year a mere 9,513 new homes were issued with a Building Energy Rating, a better indication of new builds than ESB connections. While up 77pc on the previous year it is appallingly low with demand estimated to be running at about 40,000 homes a year.”

  He said with the new Home Building Finance Ireland agency, which will administer a loan fund of €750m for builders/developers, not due to begin operations until later this year the supply figures will remain “very challenging”.

  He warned that the interest rate applicable on the loans would be critical. “If it’s the mooted 8pc then it will be too high for many SME builders, and may only facilitate those who are already in a position to build in any event.” 

  Mr. Davitt also said that IPAV’s Residential Property Price Barometer would indicate that, contrary to some commentary, increased supply does help taper house price growth.

  “The low rates of price increase for 2-bed apartments and 4-bed semis in South Dublin where new developments have come on stream certainly support that,” he said.

  “In addition official data on the detailed costs of construction would help in the event of profiteering beginning to emerge. 

  “It’s regrettable that although promised since July 2016 it has not emerged to date,” he concluded.