Meath: Meath values are up by 15pc but are set to slow for 2018
Prices are up by a significant 15pc in Meath with an average of €250,000 for a four-bed semi-detached amid a surge in buyers seeking to escape skyrocketing rents both within the Royal County and in Dublin.
By the third quarter of 2017, average rent in Meath was at €1,147, up 13pc from the same three months a year earlier, according to a Daft.ie report.
Jane Monaghan of the T&J Gavigan agency, who says 40pc of buyers in Co Meath now come from Dublin, pointed out that a two-bed apartment now commands up to €1,000 a month in rent. A second-hand two-bed property can be bought for between €140,000 and €150,000, so a buyer with a 20pc deposit and a 30-year mortgage term could spend just half that rent covering monthly mortgage repayments.
"Buyers have to jump through a lot of hoops to get a mortgage, but they have a lot more savings behind them than in previous years, especially if they have been renting for years," Monaghan says.
Co Meath witnessed a slew of new residential launches or phases in 2017, including Churchfields, Millbourne, Wafre Lodge, and The Elms at Archerstown Demesne in Ashbourne, Cois Glaisín and Dunville in Navan, Eastham Square and Cois na Mara in Bettystown, The Willows in Dunshaughlin, and Holsteiner Park in Clonee. That wasn't enough to dampen prices in 2017, but there are signs that price inflation will slacken in 2018 as additional developments come on stream.
"There are three or four new developments in Navan at the moment and more are due to come up next two years," Ms Monaghan said.
She says two-bed apartments, as well as three and four-bed semi-detached homes, were among the most popular house types amongst buyers through 2017. Prices for two-bed apartments jumped 25pc to €150,000 last year, while the cost of an average three-bed semi in a town rose 21pc to €230,000.
However, demand has slowed for properties priced above €350,000 because second-hand buyers struggle to stump up the minimum 20pc deposit required under Central Bank rules. This is unlikely to change in the short term because the Central Bank's review of its rules in November reduced the proportion of exceptions banks are allowed to make for the deposit to 10pc from 20pc this month.