Prices to keep rising as 16,000 homes are sold in six months
Published 03/09/2014 | 02:30
PROPERTY sales have surged by 40pc in the first half of the year, with experts predicting price rises for another eight years.
Two separate reports suggest that the recovery in the property market is continuing to gain momentum nationwide.
And the lack of supply compared with demand, particularly in the family home market, is continuing to send prices soaring.
A study of the Property Price Register shows the numbers of transactions for the first six months of the year up by over 39pc on the same period last year.
There were 15,864 sales nationally between January 1 and June 30.
This is a substantial increase on the 11,387 for the same period in 2013.
While Dublin transactions numbers were up slightly less at 32pc, the capital accounted for the biggest increase in money spent on residential property with bricks and mortar accounting for €1.8bn since the start of the year.
The figure brings the value of transactions in the first six months up 46pc compared with the same period last year.
During the six-month period, every county in the country saw sales numbers rise, while the amount of money spent on property in each of the 26 counties was up in all of them bar Carlow, where the amount spent fell back by 8pc.
However, this was influenced by the one-off sale of Oakley Wood in Tullow for €2.1m back in March 2013 - accounting for so many homes that it had the weight to lower the average for the county overall.
Dublin clocked up 5,240 sales - an increase of almost one third on the 3,966 sales recorded for the same period last year. Next after the capital came Cork (1,694) and Galway (851) with the commuter counties of Kildare (649) Wicklow (537) and Meath (525) close behind.
According to the MyHome.ie analysis, the biggest percentage increases in transactions were recorded in the midlands and western areas. While Cavan led the way with sales up 114pc, this was helped significantly by the sale of 43 properties in the Clare's Court development on Church Street in Cavan town.
However, sales numbers in many of these locations were also coming up from a very low base.
Other counties that saw impressive sales growth were Kilkenny (68pc), Offaly (67pc), Laois (62pc), Mayo (57pc), Sligo (50pc) and Westmeath (49pc). In contrast those counties with the lowest number of sales were Monaghan (141), Leitrim (145) and Longford (152).
Angela Keegan, managing director of Myhome.ie, said the positive trend of the first six months was very good news for the property sector.
"After some very challenging years the market is growing again and we need it to keep on growing if we are to return to a normally functioning market. Sales are closely linked to employment opportunities and that is why we see more sales in our cities and the commuter belts.
"While we still have some way to go and the shortage of stock in Dublin and some other urban areas is a real concern - it's clear confidence is returning to the market," said Ms Keegan.
Meanwhile, 'Irish Property - From Stabilisation to Recovery' - a study by Goodbody - suggests the Irish property resurgence is still in its early stages and that price increases could continue for almost another decade, based on the average recovery periods of other crashes in 10 selected countries.
Goodbody says that the key factors driving this are supply shortages, a slow response from the construction sector, and strong rental yields -running at 8pc in Dublin city centre, 6.3pc in Cork city, 7.2pc in Limerick and 6.8pc in Galway.
Prices have been rising in Dublin for a number of years but only kicked off elsewhere since the start of 2014.