Tipperary House Prices Rise .87% This Year

The price of the average three-bed semi detached house in Tipperary has increased by .87% to €129,750 in the last three months, a nationwide property survey has found.

The REA Average House Price Survey concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an up-to-date picture of the property market in towns and cities countrywide to the end of Q1 this week.

The average three-bed house in Nenagh takes just two weeks to sell, compared to 16 weeks in Roscrea and six in Clonmel.

“The demand in Roscrea is mainly local with very little movement of people to the town,” said Seamus Browne from REA Seamus Browne in Roscrea.

“At present there are very few houses for rent in Clonmel and other towns in south Tipperary and this is driving up the rental price and the sale price of three bed semis,” said John Stokes from REA Stokes & Quirke in Clonmel.

“We are finding that demand is outstripping supply with no new three bed semis being built as the cost of building is greater than what they are achieving on the open market.”

“The market for sales was slow to get going after Christmas,” said Eoin Dillon from REA Eoin Dillon in Nenagh. “Uncertainty in relation to the general election, world economy and weather may have been factors, but a shortage of supply is still affecting the market.”

“The lack of supply is a major problem and prices will not justify new build estate properties at present,” said James Lee from REA John Lee in Newport.

The average three-bed semi nationally now costs €191,194, a rise of €2,824 or 1.5% on Q4 2015.

The average price of a three-bed semi in Dublin City and County has risen by 0.6% from €332,000 to €334,000 in the first three months of the year.

However, this activity is mainly centered on limited new building activity in the north of the county and pockets of south Dublin which have seen the return of the cash buyer to the market.

While prices have risen slightly by €2,706 (+1.31%) to €209,559 in the commuter counties and main cities such as Cork and Galway, these rises are confined to the few towns that have new developments on the market.

The biggest growth has been in towns in the rest of the country where prices have risen by 9.58% in the past year, and 2.59% since December, with the average three bed semi increasing from €122,161 to €125,321.

However, REA agents around the country state that many local rises are now being caused by lack of stock driving up prices.

“We are seeing a marked absence of the 25-40 year olds at viewings in the capital over the past few months as, under the current Central Bank restrictions, they are finding it impossible to raise the deposits needed to purchase houses over the €220,000 limit,” said REA chairman Michael O’Connor.

“Conversely, we are seeing growth in commuter interest in counties previously considered at the edge of the daily travelling limits such as Laois and Offaly, simply because the price is right.

“Louth is the perfect example of this trend in commuter migration. Drogheda prices remained static at €197,500 in Q1 while commuter interest caused prices to rise by €10,000 to €135,000 in Dundalk, which is 35km further away from Dublin but over €60,000 cheaper on average.

“Although supply is extremely limited, suitable properties are now being bought in these areas by buyers who are prepared to travel over an hour to work in the capital.

“Lack of supply of suitable housing is the paramount issue nationwide, and while we have had rises in many areas, they are primarily driven by buyer competiton for the lowest supply we have seen in years.”

With prices rising by 5.1%, and viewings up substantially, Limerick was Ireland’s fastest growing city in Q1, with three bed semis increasing by €8,000 to their current level of €165,000.

Growth continued in Cork city (+1.75%) and Waterford (+1.61%), while the market in Galway remained static in Q1, with no new developments expected in the Connacht capital until 2017.


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