A MASSIVE shortage in family homes across the Southside and in Tallaght, in particular, has led to an astonishing rise in property prices, the latest survey of the sector has revealed.
The average price of a three-bed semi in South County Dublin rose by a whopping 13.49 per cent in the first six months of the year, according to the national survey carried out by Real Estate Alliance.
The price of an average three-bed semi in the county is now
?¬357,500, a rise of 23.74 per cent over the past 12 months, the Real Estate Alliance Average House Index has found.
And REA Dempsey in Dun Laoghaire reported that the market has seen significant improvement there in the past year, with the average time to sell a property dropping from 24 weeks a year ago to five weeks now.
Meanwhile, three beds in Tallaght and the Dublin 24 area have leaped 25 per cent from
?¬160,000 in December to a current average of
?¬200,000.
The REA index concentrates on Ireland’s typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.
Three-bed semis have seen a rise of 19.69 per cent across the country over the past year, while prices in Dublin city rose by 21.16 per cent.
The average price of a three-bed semi is now
?¬170,074 nationally including Dublin, an increase of
?¬17,018 (11.12 per cent) on the end December 2013 figure of
?¬153,056.
The average three-bed semi in Dublin now costs
?¬348,333 – a jump of
?¬36,666 since the start of the year.
“Tallaght, in particular, is reflecting a huge shortage of property on the market, particularly family homes,
? said Real Estate Alliance CEO Philip Farrell.
“Prices are being influenced by the fact that there was very little property moving in the area a year ago.
?
The average property is now taking just nine weeks to sell nationwide, on average nearly 32 per cent quicker than six months ago, while in Dublin, the time taken to sell has halved from eight weeks at the turn of the year to just four now.
While there has been a sharp annual rise in the amount of distressed properties being sold on the market (up 32.45 per cent nationally), most of that growth was in the back end of last year, and the rate of increase this year has slowed to just 7.56 per cent, showing a return of the private seller in greater numbers.
According to REA, there is evidence that the banks are financing house buyers to a greater extent with the amount of cash transactions dropping from an average of 66 per cent in Dec 2013 to 53 per cent in June 2014.
“In Dublin, mortgage transactions now make up 49 per cent of all sales, and we are seeing hard evidence that the banks are lending in increasing numbers,
? Mr Farrell added.