The rise in the price of an average three bedroom semi detached house in Dublin city has slowed to 0.66% in the first three months of 2015

The rise in the price of an average three bedroom semi detached house in Dublin city has slowed to 0.66% in the first three months of 2015, according to a national survey carried out by Real Estate Alliance, with one area experiencing a fall of -1.79%.

 

The Real Estate Alliance Average house index concentrates on Ireland's typical stock home, the three-bed semi, giving a picture of the property market in towns and cities countrywide.

 

The average three-bed semi in Dublin City now costs €381,667, with Lucan and Dublin west in particular experiencing a fall of -1.79% or €5,000 on average.

 

It now takes four weeks to sell the average house in Dublin city, a figure that increased from three weeks since September 2014.

 

While demand is high for properties close to the €220,000 threshold, the Central Bank’s restrictions on deposit requirements have had an immediate effect on the capital’s housing market, with lack of suitable supply another major factor.

 

The average semi detached house nationally, including Dublin, now costs €187,153 the latest REA survey has found – a rise of 16.23% over the past 12 months.

 

However, the average house has risen by just 1.32%, or €7,005, across the country over the December 2014 figure of €184,713 – and the lack of a supply of suitable housing is a feature of the market across the country.

 

“There is an acute lack of supply of three-bedroom family homes because it is still not financially viable in many areas for builders to construct homes and make a profit,” said REA Chief Executive Philip Farrell.

 

“Following the Q4 slowdown, Dublin is now feeling the joint effects of the abolition of the Capital Gains Incentive and the and the introduction of increased deposit requirements by the Central Bank,” said Philip Farrell.

 

“However, in areas of the capital where average values are below the €220,000 threshold, strong demand still exists from both first time buyers and investors.”

 

And while Dublin led the way in the market recovery last year, prices have fallen by -0.28% in Dublin city and county in the opening quarter, where the average semi-d now stands at €352,500.

 

“The market for three beds and smaller is strong but taking a week longer to sell than last September,” said Barry McDonald of REA McDonald, Lucan.

 

“However, there is definitely less demand for anything above 400k and we are seeing signs of better supply levels coming with building sites in full swing in various places and new build schemes hitting the market.

 

“There is a still a little amount of uncertainty out in the market place, but new regulations don’t seem to have had an effect on overall demand.”

 

Paul Grimes of REA Grimes Dublin city centre said: “There is a massive shortage of stock in Dublin and demand is still very high in the more sought-after areas.

 

“Three and four bed semis located near good schools and near rail stations are particularly in demand. We are seeing a shortage of property to let with no new builds taking place. “

 

In a complete shift in the market, the biggest increases over the last year have come from what is termed Tier Three – the country areas, outside of the pale and the major cities, which have gone up by 17.28%, ahead of Dublin city’s 17.18%, and 14.82% when Dublin city and county are combined.

 

Over the past six months, property price rise rates in the rest of the country (5.1%) have more than trebled that of the capital (1.55%).

 

In the opening quarter this year, there have been significant increases in Carlow (7.50%) Kilkenny City (7.41%), Waterford City (5%) and Wexford (8%), while the rise in sterling has seen a jump in property prices in Bundoran in Donegal of 7.69%.