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27 May 2022

10% house increases but Mica issue not impacting county house values

Letterkenny fifth in affordable areas for 3-bedroomed houses - Sunday Times

House prices

Donegal can expect house values to increase by 10% over the next twelve months months, The Sunday Times have said in their latest annual forecast for counties in the Republic of Ireland, which are carried today in a 32 page property supplement.

They rank Letterkenny fifth in the most affordable area for a three bedroom property, coming in at between €140,000 and €160,000.

And they have said that despite the Mica scandal, the border counties of Cavan, Donegal, Leitrim, Monaghan and Sligo saw house prices rise the highest in 2021, coming in at a hefty 24.1% average rise.

And they say these values show no sign of slowing down.

County Kildare is set to experience the highest increase in home values in Ireland with a 20% rise in residential property value expected over the next 12 months, according to the 2022 Sunday Times Property Price Guide.

Kildare is followed by Co Laois, with a 15% rise forecasted, while Donegal, Roscommon, Co. Sligo, Sligo Town, Carlow and Kilkenny could all be hit with a 10% increase according to the country’s estate agents. Monaghan will register the lowest price rise, with a 4% hike predicted.

Now in its 19th year, The Sunday Times Property Price Guide is the authoritative guide to the Irish property market, featuring interviews with a number of Ireland’s estate agents who outline their predictions for the year. It also includes a detailed analysis of Dublin property prices.

Estate agents across Ireland are predicting the following price increases in residential property values in The Sunday Times Property Price Guide:

Kildare - 20%
Laois - 10%-15%
Roscommon - 10%
Sligo Town - 10%
Co Sligo - 10%
Carlow - 10%
Donegal - 10%
Kilkenny - 10%
North Co Tipperary - 8%-10%
South Co Wicklow - 8%-10%
Longford - 8%-10%
Waterford - 8%-10%
Offaly - 7.5% to 10%
Galway - 2%-10%
South Co Tipperary - 7%-9%
Cavan – 8%
Cork City South - 5%-7.5%
Cork City - 7%
Mayo - 7%
Cork City North - 5-7%
Kerry - 5%-7%
Meath - 6%
Leitrim - 5%-6%
East Co Cork - 5%
North Co Cork - 5%
Limerick City - 5%
Limerick - 5%
Louth - 5%
Clare - 5%
Westmeath - 5%
Wexford - 5%
North Co Wicklow - 5%
Monaghan - 4%
 

Nationally, residential property prices were up 13.5% annually in October 2021 — compared to a 0.5% decrease in October 2020 and estate agents across Ireland believe people are looking to re-locate in their home counties, with many others just re-routing — and bringing higher salaries and greater spending power with them.

In many counties, that has been an important contributing factor to price hikes in more rural and coastal areas, with remote working a serious factor. Outside Dublin, the average price increase for residential properties in 2021 was 14.6%.

Despite the Mica scandal, border counties of Cavan, Donegal, Leitrim, Monaghan and Sligo saw house prices rise the highest in 2021, coming in at a hefty 24.1% average rise and these values show no sign of slowing down.

Predictably, higher demand means prices have gone up and this is further compounded by many counties experiencing the lowest number of new homes available in decades.

The cost of construction has made it more expensive, in some cases, to build a new home than to buy a second-hand one. This has been further amplified by healthcare restrictions curtailing construction work for months on end, the mica scandal and supply chain issues following Brexit and the Suez Canal blockage in March 2021.

The Sunday Times Property Price Guide 2022 reveals that the top 5 most affordable areas for three-bed houses are:

1. Mohill, Co. Leitrim = 118,000

2. Ballinamore, Co. Leitrim = 125,000

3. Granard, Co. Longford = 125,000

4. Leitrim Village, Co. Leitrim = 135,000

5. Letterkenny, Co. Donegal = 140,000-160,000

Top five most expensive areas for three-bed houses are:

1. Greystones, North Co. Wicklow = 498,000

2. Model Farm Rd., Cork City = 430,000

3. Ballinlough, Cork City = 410,000

4. Blackrock, Cork City South = 395,000

5. Salthill, Galway City = 393,000

Patrick O’Donoghue, Primary Researcher for The 2022 Sunday Times Property Price Guide, says: 

“Buyers are now much more focused and know what they are looking for, but opportunities come at a premium. Estate agents across Ireland have told us they expect prices to rise significantly as the landscape of remote work and the need for space becomes a reality for many people.

"People are beginning to realise the possibilities of working remotely and living in new surroundings across the country. While coastal counties are set to perform well there is also serious signs of values rising in counties close to the Capital. While 2021 taught us to expect the unexpected – Irish estate agents are seeing rises across the board for residential properties.”

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