Price of homes in rural areas 'to rise by 20pc per year'
Published 02/05/2015 | 02:30
HOUSE prices are expected to surge by up to 20pc a year in country areas over the next two years, property experts warned.
Keith Lowe, chief executive of one of Ireland's largest estate agency networks, said he expected the Irish market to switch gears completely in the years ahead.
Mr Lowe, who heads up Douglas Newman Good (DNG), said data from its research department and other sources indicated properties in the Greater Dublin area will experience much slower growth. Until recently, Dublin prices have caused concern by adding 20pc plus in values per annum, while country prices have been much more restrained.
Speaking at the National Residential Property Conference 2015 held in UCD yesterday, Mr Lowe said he expected recent price falls in the capital would prove to be a temporary phenomenon. "I believe that these decreases had less to do with the Central Bank's lending restrictions, as popularly claimed, and almost everything to do with the expiry of the Capital Gains Tax Relief deadline at the end of the year," he said.
"The market conditions for Dublin overall remain robust and I would expect the capital to turn in property price growth of between 5pc and 10pc per annum for the next two years."
He believes €190,000 is now the viable price level for a three-bed semi, and that beneath that threshold builders could not make a profit. Because of this, parts of the country where prices ranged well below this would not see homes being built and prices would increase more rapidly as a result.
Also speaking at the Irish Independent and Ulster Bank-organised event, which was attended by more than 450 property professionals from around the country, was Ulster Bank's Simon Barry.
The bank's chief economist said he believed property prices would continue to rise based on good fundamentals and in particular, growing employment.
There were calls for punitive taxation measures against dereliction and under-use of sites from mortgage finance expert Karl Deeter.
And Hubert FitzPatrick, housing expert with the Construction Industry Federation, called for housing standards to be directed universally by the Department of the Environment.