26 Sept 2022

House prices rise in every county as property shortage bites

House prices rise in every county as property shortage bites

A shortage of properties for sale saw the average price of a house jump by almost €28,000 last year, a report has found. 

Nearly one in 20 homes is vacant, despite the lack of supply, according to a wide-ranging analysis by GeoDirectory database.

The database was set up by An Post and Ordnance Survey Ireland to create a list of commercial and residential buildings.

Property prices rose in all 26 counties last year.

The national average house price during the year to last October was €321,596.

This was up 9.4pc, or €27,655, compared with the previous 12-month period to October 2020.

Dublin remained the most expensive location to buy a house in Ireland, with an average price of €496,652.

Neighbouring counties Wicklow (€428,493) and Kildare (€338,874) were the only other counties with residential property prices higher than the national average.

The lowest average house price over the 12 months to October 2021 was recorded in Longford, at €142,298.

This represents an increase of 64.3% vis-à-vis the average house price in Longford during the corresponding 12-month period in 2016 (€86,598).

House prices were up 18pc in Sligo, 17pc in Mayo and 16pc in Longford.

Besides Dublin (€496,652), Wicklow (€428,493), and Kildare (€338,874), all other counties recorded house prices below the national average. Meath, Cork, and Galway were the only other counties to record average house prices above €250,000.

On the other hand, Longford (€142,298) posted the lowest average house price across the 12 months to October 2021, followed by Leitrim (€143,457) and Roscommon (€149,433).

There were parallel increases in average house prices among all eight city council areas during the 12-month period to October 2021.

Properties in Dún Laoghaire-Rathdown (€686,393) remained the most expensive, having risen by 14.8% YoY, faster than any other city council area.

By contrast, Waterford City reported the lowest average house prices (€200,524), despite prices increasing by 8.8% in the 12 months to October 2021 versus the corresponding period in 2020.

Dara Keogh, CEO of GeoDirectory said, “Covid-19 has proved to be a substantial speed-bump for the delivery of housing supply in Ireland. The knock-on impact of the closure of construction sites in early 2021 can be seen in the relatively low number of new address points added to the GeoDirectory database, which was down 17.4% on the previous year.

"However, residential construction activity has rebounded strongly since reopening fully in April, with 19,495 buildings recorded as being under construction in Q4 2021, the highest figure recorded since we started this report in 2014. This indicates a strengthening residential supply pipeline going into 2022,” Mr Keogh said.

Annette Hughes, Director, EY Economic Advisory said, “The level of housing supply coming onto the market in 2021 was well short of what was needed to meet demand. While the data around residential construction activity in the latter half of 2021 is extremely encouraging, there is still exceptionally high levels of demand in the housing market.

"This is evident from the significant increase in the average house price, up 9.4% nationally, with price increases recorded in every county. Based on our analysis for this report, the 90,158 vacant residential properties and the 22,096 derelict residential properties across Ireland should be investigated to ascertain if they can be returned to the housing stock, a move which would also support our retrofitting targets," Ms Hughes said.

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