The price of three-bedroom semi-detached houses in Dublin rose by 6.2 per cent in the first six months of the year and the majority of auctioneers believe house prices nationally will rise in the remainder of 2002 as the number of houses for sale decreases.
According to the latest survey on house prices, carried out by the Institute of Professional Auctioneers & Valuers (IPAV), three-bed semis in Dublin increased by more than any other category in the six months to June 30th. The average price of all houses in the Republic increased by 5 per cent to €173,957.
The average price of a three-bed semi in the greater Dublin area was €235,000, an increase of 6.2 per cent on the preceding six months. For the purposes of the survey, the greater Dublin area is defined as the area stretching from Dublin as far as Carlow, Portlaoise, Tullamore and Mullingar. The average price of all houses in the greater Dublin area jumped by 5.4 per cent to €247,289 in the period.
Prices for three beds in all other regions outside Dublin increased by at least 4.9 per cent.
In the new-house market, prices nationally rose by 6 per cent to €166,205.
In Munster, the average price of houses jumped by 5.1 per cent. In Cork, the average price of a three- bed semi increased by 5.6 per cent to €169,426 while in the rest of Munster growth was even stronger with three-bed semis rising by 6.1 per cent to €151,466.
In Leinster, excluding Dublin, average house prices rose by 5 per cent while three-bed semis increased by 6 per cent to €140,586.
In Ulster, the average price of all houses increased by 3.8 per cent with three-bed semis increasing by 4.9 per cent to €138,792. And in Connaught the average price of all houses rose by 5.1 per cent with three beds in the province posting 5.4 per cent increases.
As expected, Dublin rental prices were the highest in the State with the average rent for a one-bed apartment now €807 per month and €1,030 for a two bed.
As part of its new research, the IPAV surveyed 200 of its members on their views on trends in the property market going forward and also on the effectiveness of Government policy in the area.
Two-thirds of those surveyed believed that Government housing policy had been developed with no clear goals in mind, with 60 per cent believing there was a shortage of zoned and serviced land around the country. Eighty per cent of respondents believed the reintroduction of mortgage interest relief in the last Budget had brought investors back into the market.
In other trends, 70 per cent of those auctioneers surveyed believed house prices nationally would continue to increase in the remainder of the year and 60 per cent said the numbers of houses for sale would decrease. Finally, 66 per cent said planning policies in rural areas were not appropriate for the development of housing for local residents.
IPAV chief executive Mr Liam O'Donnell said the Government had a clear opportunity to put in place a five-year housing strategy which, if properly implemented, could enable thousands of people to own or rent homes at affordable prices.
"While there has been little consistency in Government policy in recent years, the reintroduction of mortgage interest relief in the last Budget has led to more stable rents all round," he said.
"However, the shortage of houses, particularly in the Dublin area, is going to continue to be a problem that is likely to reflect itself in higher prices," he said.
