Property prices across the nation are set to record increases of over 5 per cent for 2016, according to two new reports.
According to a report from Daft.ie, average house prices in Dublin are up by 5.3 per cent to €323,000 while prices in Waterford are up 16.4 per cent to €147,498.
Housing in other student hubs have also augmented with Cork and Galway increasing by 9.8 per cent and 11.8 per cent respectively.
The Daft.ie and Myhome.ie reports are based on asking prices and not transaction prices which the Central Statistics Office (CSO) index is based on.
The two reports differ when it comes to price increases in the third quarter of the year. Daft.ie captured significant increase, especially in Dublin, which found an annual rate of inflation reaching over 5 per cent while Myhome.ie recorded a lull in prices in the same quarter with a quarterly rise of 0.4 per cent nationally.
The authors of both reports, Davy’s Conall MacCoille for Myhome.ie and Trinity College economist Ronan Lyons for Daft.ie, agree that supply issues are effecting the market.
Mr MacCoille said a lack of supply is impacting transactions with levels falling 5 per cent over the first eight months.
Mr Lyons said the latest report shows the on-going imbalance between very strong demand and weak supply, all across parts of residential real estate.
“This imbalance between demand and supply has meant that rents have risen by over 50 per cent in some parts of Dublin and by at least one third in Cork and Galway,” he said.
“This demand for homes comes from a growing population, including growing student numbers.”
The likelihood of rents to fall any time soon for students is quite low according to Lyons, who also said any planned new student accommodation will take a few years to make an impact and may only be enough to meet new demand.
Andrew Byrne
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