HOUSING

The price of the average three-bed semi in County Tipperary is expected to rise by 2.9%

Anne O'Grady

Reporter:

Anne O'Grady

Tipperary house prices

House prices continue to rise in Tipperary

The price of the average three-bed semi in County Tipperary is expected to rise by 2.9% in the next 12 months, according to a survey carried out by Real Estate Alliance.

Prices in the county rose by 7.8% to €163,125 in 2018 – with no change between September and December.

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

Former REA Chairman Eoin Dillon of REA Dillon in Nenagh has described how a Brexit deal or no deal scenario would affect business in Tipperary in plain terms.

“If Brexit goes well then a 5%-10% increase will be on the cards.  If it’s no deal, or a bad deal, then we foresee only a nominal increase,” he said.

“Generally, there is good demand but there is a severe shortage of supply.

"There is practically no price inflation, particularly at the higher end of the market.

“Fears around Brexit are likely to be the main cooling factor, but affordability is also becoming an issue.”

The market is fairly stable in Clonmel, according to John Stokes of REA Stokes and Quirke.

“Prices are similar across the board to the last quarter, with bank lending proving restrictive, especially for top end houses,” he said.

“Uncertainty over Brexit and the global economy will affect the market negatively, and if the banks put up interest rates it will contract further.”

Demand and supply was steady throughout 2018, said Seamus Browne of REA Seamus Browne in Roscrea.

“A number of properties which had been on the market for some time have been sold,” he said.

“Supply will be a problem, if Brexit doesn’t affect the market, supply will. 

“Lack of finance is also becoming a more pronounced problem.”

The average semi-detached house nationally now costs €236,287, the Q4 REA Average House Price Survey has found – a rise of 0.6% on the Q3 2018 figure of €234,284.

Overall, the average house price across the country rose by 4.6% in 2018 – a decrease on the 5.4% recorded to September and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.

Growth in the commuter counties also slowed to 0.38% in the last three months – an annual rise of 4.18% – with the average house now selling for €249,472.

This is an annual rise of €10,000 and growth of €2,000 in the last three months.

The country’s major cities outside Dublin recorded the biggest rise of the quarter at 1.25%, an annual increase of 5.81%, with an average three-bed semi costing €252,500.

The biggest urban rise was seen in Galway City, where selling prices rose by 2.7% in the quarter to €282,500 – a yearly increase of 9.7%.

The highest annual increases (7.7%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €10,000 in 2018 and which experienced a 0.85% rise in Q4 to an average of €157,717.

“In these areas, you largely have the perfect storm of affordability within the 10% deposit range, and no new homes as it is still uneconomical to build in many places,” said REA Spokesperson Barry McDonald.