The Society of Chartered Surveyors Ireland (SCSI ) Annual Residential Property Review and Outlook report reveals that estate agents across the country believe demand will increase across all property types with national house prices anticipated to increase by four per cent this year. The report expects Connacht prices to increase by five per cent in 2019, down from eight per cent as reported in 2018.
Among the key findings in Connacht and Ulster were:
Owners of three bed semidetached houses in Connacht and Ulster are likely to see the highest price growth this year, with estate agents predicting a price increase in value by six per cent.
Within the region, 47 per cent of agents expect to market new homes in 2019, compared to just 23 per cent in 2018.
More than 80 per cent of SCSI agents in Connacht and Ulster indicated that vendor expectations increased in 2018.
The SCSI report highlighted that the ageing population growth is leading to a changing profile of buyers and the need for smaller but a more age-friendly housing supply.
The report reveals 90 per cent of SCSI agents expect prices to rise in 2019, none of whom is expecting prices to fall, marking an increase on expectations last year.
Aine Myler, SCSI director general, said that while the market remains in good health, sales in 2018 were still taking just over five months to complete, and many were still falling through. “Homeowners and prospective buyers alike are keen to make the sale happen and move into their next property," she added. "The challenge for estate agents is managing some vendors’ excessive price expectations. While we predict continued house price growth on average this year, there will be winners and losers. For the market to operate efficiently, we need a regular turnover of sales to help purchasers and sellers to keep moving up and down the ladder. Potentially unrealistic asking prices can leave all parties disappointed, curtailing market movement when it is needed most and as affordability limits kick in.”
Enda McGuane, MD Winters Property and SCSI western representative, said: “This is a very timely report coming as it does when the North West Regional Assembly is preparing a spatial and economic strategy for the region. The report highlights the growing demand for affordable residential properties both in Galway city and in other urban centres like Sligo, Athlone, and Letterkenny. In addition, it reinforces the opportunity that exists for the rejuvenation of small town centres as outlined previously by the SCSI and as enshrined in the National Development Plan.”
On the rental front, landlords exiting the sector in all areas is ranked in the top three issues facing the market by three quarters (72 per cent ) of respondents. With 78 per cent of agents reporting an increase in tenant demand in the past 12 months which reflects the supply and affordability problems that many people face in relation to house purchase. Rents are expected to rise by an average of more than eight per cent across all segments of the market, ranging from 7.9 per cent for two-bed townhouses to 8.5 per cent for four bed semidetached houses.
More than 486 estate agents, auctioneers, and chartered surveyors around the country took part in the survey in late November/early December 2018.