Main Findings;
- Nationally house sales are up 8.4% while the value of transactions is up 15%
- In Dublin sales are up 11% with the value of transactions up 13.2%
- Notable rise in sales and values in Dublin commuter belt
- Value of transactions up in all counties except Clare and Donegal
A new study based on an analysis of the Property Price Register shows that the number of sales nationally has increased by 8.4% in the first half of 2017, compared to the same period last year.
The study, which was carried out by leading property website MyHome.ie, shows that there were 23,148 sales nationally in the first half of the year. The value of those transactions also increased significantly, rising from €5.1bn to €5.8bn, an increase of 15%.
While sales figures rose in twenty counties and fell in six the amount of money spent on property in each county was up in all with the exception of Clare and Donegal where the amount spent fell back by 19% and 7% respectively.
While the falls in the number of sales in Galway, Limerick and Waterford were low or even marginal, there were sizable falls in Longford (19%), Sligo (17.2%) and Donegal (14.5%).
Unsurprisingly, it was Dublin that led the way in the first six months of the year with 7,455 sales – an increase of 11% on the 6,717 sales recorded for the same period last year. The amount of money spent in the capital also grew by 13.2%, from €2.7bn to over €3bn.
The capital was followed by Cork (2,532), Kildare (1,212), Galway (1,138) with Meath (970) and Limerick (834) making the top six.
Angela Keegan, Managing Director of MyHome.ie said the overall increase in sales in the first six months was a move in the right direction for the property market.
“In 2016 there were over 49,000 house sales and we think that if current trends continue we should see in the region of 53,000 sales this year.
“The rise in sales and values in the commuter belt is the standout feature in these figures and indicates that the lack of supply of affordable houses is pushing buyers out of Dublin. We can see that the number of sales in Meath is up 43% while the value of transactions is up 47%. In Wicklow sales are up 21% while values are up 25%..”
“The downside of this trend and something which has been highlighted in recent reports is the increase in commuting times for people working in Dublin.”
“The impact of rising prices is also evident even in counties which recorded small increases in the number of sales. For example the number of sales fell in Galway by 1.4% but the value of those transactions was up 9%. Similarly in Limerick the number of sales was down marginally – 0.1% - but the value of those transactions was up 16.7%” she said.
Ms Keegan said speculation around the future of the Help to Buy scheme had caused unnecessary uncertainty in the property market.
“This initiative was introduced as a supply side initiative to encourage the construction of affordable homes. We are seeing a lot of new developments coming on stream now and that is something which really needs to continue if we are to get to grips with the current housing crisis. ‘Help to Buy’ on its own won’t solve the crisis – we need a coordinated package of measures for that – but abolishing it would be a retrograde step. ” she said.
Other counties which saw impressive sales growth included Cavan (27%), Offaly (18%), Roscommon (13.5%) and Kerry (12.6%).
Not surprisingly several of these counties also saw significant rises in the value of transactions. For example Cavan was up 37%, Offaly was up 36%, Roscommon was up 27% while Kerry was up 12%.
Several counties in the midlands and border region bucked that trend. For example the number of sales in Laois rose by just 0.7%, but the value of transactions increased by 21%. In Westmeath the figures were 3.1% and 28% while in Monaghan the figures were 1.5% and 22%.
The counties with the lowest number of sales were Longford (177), Monaghan (201), Leitrim (224) and Carlow (247).
The most money was spent in Dublin, over €3bn with the least being spent in Longford, €16m.
