Tipp house prices to rise by 4% in 2021

Noel Dundon

Reporter:

Noel Dundon

Email:

nd@tipperarystar.ie

Brú na Manach, Thurles

House prices will rise by 4% in Tipperary in 2021 according to REA

A survey by Real Estate Alliance has come up with the findings

The price of the average three-bed semi in County Tipperary is expected to rise by 4% in the next 12 months, according to a survey by Real Estate Alliance.

Prices have increased by almost €4,000 or 2.1% in the last year, the Q4 REA Average House Price Index shows.

Three-bed semi-detached homes in the county now cost an average of €175,125, up from the December 2019 average of €171,500.

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.

REA agents now expect price rises of 4% in three-bed semis across Tipperary in 2021 – double the 2% increase seen in 2020.

Nenagh and Newport now account for the highest prices in the county at €180,000 – partly fuelled by young, single women entering the market in Nenagh – followed by Clonmel (€177,500) and Roscrea (€163,000).

Over the last 12 months, Clonmel showed the largest price increase at 4.11%, three-bed semis rising from €170,500 to €177,500.

But although Roscrea showed no price change since Q4 2019 on €163,000, it was the town showing the biggest reduction in time taken to sell – falling from 14 weeks in Q1 to six weeks in Q4 2020.

“Roscrea is very much a local market and time taken to sell has shortened,” said Seamus Browne of REA Seamus Browne, Roscrea.

“Supply in the new year will be an issue as there have been no new houses built in 12 years.”

The supply concern was echoed by Eoin Dillon of REA Eoin Dillon in Nenagh, who said: “Very few properties are available on the market to buy, those that are coming to market are being snapped up quickly and especially the well-presented, turnkey ones. 

“A very noticeable increase in the number of young single people buying. I would

expect supply to be very limited with some moderate price increase in 2021.”

James Lee of REA John Lee in Newport said prices will remain steady this year if supply continues but will increase if there is little or no supply.

“Availability of finance going forward along with supply of properties is going to continue to be an issue, especially with the lack of availability of new builds,” said John Stokes of REA Stokes and Quirke.

“At present there are no real new builds coming on the market in South Tipperary.”

Nationally, average house prices rose by almost 1.5% over the past three months in a market fuelled by a combination of record mortgage approvals and an unprecedented lack of supply.

The price of a three-bedroomed semi-detached house across the country rose by more than €3,000 over the past three months to €239,194 – an annual increase of 1.9%.

The biggest rises in Q4 came in Ireland’s secondary cities and the commuter counties – both of whom had experienced the least movement in prices over the preceding 18 months.

The price of a three-bedroomed semi-detached house in Dublin City rose by 0.6% to €431,833 during the past three months, an annual increase of 1.41%.

Cork, Limerick, Galway and Waterford cities shared a combined increase of 2.4% in the past 12 weeks with prices rising by €6,000 to an average of €262,500.

Commuter counties are now feeling the benefit of the migration towards space and home working potential, with three bed semis rising 2.2% by almost €6,000 on the Q3 figure to an average of €253,111.

Reflecting the flight to rural locations, prices in the rest of the country’s towns rose by 1.2% in 12 weeks to €165,397.