1 July 2018
By Elaine Murphy
€273,894, that’s how much you need to buy a house in Cork City. This is – of course – an average, but it speaks volumes about the problems facing millennials and other young people looking to upgrade from renting to owning.
In Cork City, prices in the first three months of 2018 were 7% higher than a year previously, compared to a rise of 9% seen a year ago. The average house price is now €274,000, 67% above its lowest point. In the rest of Cork, prices in the second three months of 2018 were 4% higher than a year previously, compared to a rise of 11% seen a year ago. The average house price is now €215,000, 50% above its lowest point.
In Dublin, prices rose by 1.8% between March and June, meaning that the average price in the capital is now almost €155,000 higher than five years previously. Across each of the other major cities, prices rose substantially in the last three months – by 4.8% each in Limerick and Waterford cities and by 4.3% in Galway. Outside the main cities, prices rose by 3.2% in the same period, with the largest increases in Connacht-Ulster and the smallest in Munster.
Nationally: House prices nationally rose by 2.7% during the second quarter of 2018, according to the latest House Price Report released today by Ireland’s largest property website, Daft.ie. The average price nationwide during the second quarter was €254,000, 5.6% higher than a year ago. Compared to their lowest point in 2013, prices nationwide have risen by an average of 54% or just over €89,000.
The number of properties available to buy on the market nationwide has risen in recent months. In Dublin, almost 4,800 properties were available to buy in June, up close to 50% on the number a year previously. Outside the capital, there were almost 19,000 homes on the market in June – 2% below a year previously but up 2,000 on the March level. In Dublin the fraction of properties finding a buyer within 2 months is down (37% vs 50% a year ago), while the fraction selling within 4 months remains high (72%). Elsewhere, 65% of properties listed currently find a buyer within four months, in line with the figure from a year ago (66%).
Commenting on the figures, Ronan Lyons, economist at Trinity College Dublin and author of the Daft.ie Report, said: “Ireland’s sales market for housing remains one of strong demand and relatively weak supply. That said, there are signs – in particular from the Dublin market – that new supply is having an effect, with increased availability on the market and a slowdown in inflation. While the increase in new homes built is welcome, it is predominantly in the form of housing estates. Almost all the new homes needed in the country are urban apartments, so the mix of supply remains a challenge for policymakers.”
Martin Clancy from Daft.ie said: “Interest in the property market remains extremely strong, we’re now seeing over 1,000 property searches taking place every minute on Daft.ie”.
Average list price and year-on-year change – major cities, Q2 2018
Dublin City: €374,885 – up 6.2%
Cork City: €273,894 – up 6.9%
Galway City: €285,277 – up 6.2%
Limerick City: €189,416 – up 6.9%
Waterford City: €172,880 – up 8.8%
The full report is available from http://www.daft.ie/report and includes a commentary by Ronan Lyons, Assistant Professor of Economics at Trinity College Dublin and author of the Daft.ie Report.