House prices in Kerry, Louth and North Co. Tipperary could rise by as much as 10%, while prices in Longford are expected to increase by 7.5%
House prices nationwide are set to rise by on average 3.8% this year, according to the 2023 Sunday Times Property Price Guide which is celebrating its 20th anniversary.
This follows a previous report last week that predicted prices of homes in Dublin could rise by 2.8% in the year ahead.
“Estate agents are reporting that family homes of good quality are being snapped up in desirable locations around the country, with lots of viewings and bidding wars”
According to the latest report, growth in Louth and Kerry could vary significantly, with estate agents predicting anywhere between 0 and10% growth, putting this variance down to the quality of properties and proximity to towns and amenities.
Low supply is an issue throughout the country, with all estate agents stating that there simply aren’t enough new homes schemes coming down the tracks to alleviate the issue. An estate agent in east Co. Cork reported that “bidding wars became the norm” in 2022.
Price increases by location
Estate agents across Ireland are predicting the following price increases in residential property values:
- North Co Tipperary – 5% – 10%
- Kerry – 0% – 10%
- Louth – 0% – 10%
- Longford – 7.5%
- Leitrim – 5.5%
- Carlow – 5%
- Cavan – 5%
- Clare – 5%
- Cork City South – 5%
- North Co Cork – 5%
- Donegal – 5%
- Galway – 5%
- Limerick City – 5%
- Limerick County – 5%
- Mayo – 5%
- Monaghan – 5%
- Offaly – 5%
- Wexford – 5%
- South Co Wicklow – 5%
- Galway City – 3% – 5%
- Kilkenny – 3% – 5%
- Meath – 3% – 5%
- Waterford – 4%
- Roscommon – 3%
- Kildare – 0-5%
- North Co Wicklow – 2% – 3%
- West Co Cork – 2%
- Sligo town – 2%
- Co Sligo – 2%
- Cork City – 0% – 3%
- Cork City North – 0% – 3%
- Westmeath – 0% – 2%
- East Co Cork – 0%
- Laois – 0%
- South Co Tipperary – 0%
Scenic coastal regions are seeing high demand for detached properties and three-bedroom homes from remote workers relocating and affluent buyers from cities and abroad splurging on holiday homes. In Lahinch, a residential site overlooking the golf course sold at auction for €531,000.
“The lack of supply on the horizon is a massive concern and after high growth in 2022, prices will continue to grow, particularly in areas close to schools and amenities”
First time buyers and families trading up are competing for new and second hand three bedroom semis, in close proximity to industry, amenities and schools, driving up prices. Buyers are reluctant to take on older and colder homes because of the spike in renovation costs, though the vacant property refurbishment grant should see more derelict cottages come to market in 2023.
The critical lack of stock shall persist, particularly in rural areas where building new homes schemes doesn’t make financial sense for developers, particularly in rural parts of Donegal Leitrim and West Cork.
The Sunday Times Property Price Guide 2022 reveals that the top five most affordable areas for three-bed semi-detached houses are:
- Mohill, Co Leitrim (€130,000)
- Ballinamore, Co Leitrim (€140,000)
- Strokestown, Co Roscommon (€145,000)
- Castlerea, Co Roscommon €145,000)
- Leitrim village and Boyle, Co Roscommon (€150,000)
The top five most expensive areas for three-bed semi-detached houses are:
- Greystones, North Co Wicklow (€600,000)
- Ballinlough, Cork City (480,000)
- Model Farm Road, Cork City (€470,000)
- Blackrock, Cork City South (€450,000)
- Naas,Co Kildare (€440,000)
“Estate agents are reporting that family homes of good quality are being snapped up in desirable locations around the country, with lots of viewings and bidding wars,” said Róisín Healy, Deputy Features Editor of Sunday Times Ireland.
“The lack of supply on the horizon is a massive concern and after high growth in 2022, prices will continue to grow, particularly in areas close to schools and amenities.”