Belfast Telegraph

Price of a three-bed semi in Dublin rising by more than £1k every week

By Mark Keenan

The price of an average semi-detached home in the Republic of Ireland is €500 (£442) more than it was just one week ago, as the property crisis in the State continues to escalate.

Meanwhile, in the capital Dublin prices are surging at more than twice that rate - rising by €1,300 (£1,151) per week, the Irish Independent has revealed.

Prices of three-bed semis, the most common family home type, are now increasing at a rate almost twice as fast as they were a year ago.

The startling rises continue to push basic family homes well beyond the reach of working families.

Overall, the average house price across the Republic has risen by 11.2% over the past 12 months - this compares with 6% in the year to September 2016.

A continued shortage in the supply of properties for sale means that the average three-bedroom semi detached house now costs €221,843 (£196,446) - up from €215,269 (£190,625) three months ago.

This works out at an average €505 (£447) per week since the end of June.

In Dublin, semis leaped in value by €17,000 (£15,053) in the past three months to €431,500 (£382,102), a rise of €1,307 (£1,157) per week.

The price hike of 4.1% over the quarter or 15.6% over the past year is a rate comparable to that experienced during the boom.

The figures are published today in the Irish Independent/Real Estate Alliance (REA) Average House Price Survey. The nationwide opinion-based poll of estate agents concentrates on the current estimated sale value of Ireland's typical stock home.

Properties are selling much faster - an average of four weeks in Dublin compared with seven weeks a year ago. Elsewhere, it took six weeks to sell a semi on average, compared to seven weeks a year ago.

"Supply is the main driver of these continuing price rises, with our agents reporting that the volume of listings is down around the country," said REA spokesperson Healy Hynes. "In what is becoming a vicious circle, families looking to trade up are not seeing the larger homes becoming available, while empty nesters looking to downsize do not have a ready supply of smaller homes emerging on the market."

He added that to exacerbate matters, first-time buyers are not seeing three-bed semis coming through in sufficient numbers.

"Although planning permissions rose by 55% year-on-year in Q2, the 3,630 houses approved will not be on the market for the next two years, and even then this year's overall will be less than half is what is required on an annual basis. Looking at the supply figures, it could be 2020 before we see any normalisation in the marketplace."

Meanwhile, Donegal (€93,750, £83,017) is one of only three counties in the Irish Republic (along with Longford and Leitrim) where properties can still be bought for a five-figure sum.

But despite the absence of sterling buyers due to Brexit and the exchange rate, prices in some parts of Donegal have risen by an average of €6,250 (£5,534) since June, fuelled by an acute lack of supply of suitable properties.

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