19 Jan 2022

Kilkenny house prices to rise 2% in 2019 – REA survey

The price of the average three-bed semi in County Kilkenny is expected to rise by 2% in the next 12 months, according to a survey carried out by Real Estate Alliance.

Prices in the county rose by 4.9% to €213,500 in 2018 – with a rise of 0.6% between September and December.

The REA Average House Price Survey concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an up-to-date picture of the second-hand property market in towns and cities countrywide.

“There has been very pronounced slowdown in business, partly due to nervousness regarding Brexit, but also caused by a new pattern known as the ‘Quarter Four Stall,” said Michael Boyd of REA Boyd’s in Kilkenny City, where time taken to sell has increased from six to 12 weeks.

“This is caused by lending banks using up their yearly quota of exceptions to Central Bank lending guidelines.
“We forecast that good property will do well, but most of the market may be weak.”

Robbie Grace of REA Grace in Callan said that the market has been slow over the last period.
“A hard Brexit could have a serious knock-on effect on some large employers in the area and, in turn, on the residential letting market,” he said.
“2019 should see a slight continuation of price recovery.“We expect to see more demand for one-off sites, which, in turn, will lead to more one-off house commencements.”

The average semi-detached house nationally now costs €236,287, the Q4 REA Average House Price Survey has found – a rise of 0.6% on the Q3 2018 figure of €234,284.
Overall, the average house price across the country rose by 4.6% in 2018 – a decrease on the 5.4% recorded to September and indicating that the market is continuing to steady after an 11.3% overall rise in 2017.

Growth in the commuter counties also slowed to 0.38% in the last three months – an annual rise of 4.18% – with the average house now selling for €249,472.
This is an annual rise of €10,000 and growth of €2,000 in the last three months.

The country’s major cities outside Dublin recorded the biggest rise of the quarter at 1.25%, an annual increase of 5.81%, with an average three-bed semi costing €252,500.
The biggest urban rise was seen in Galway City, where selling prices rose by 2.7% in the quarter to €282,500 – a yearly increase of 9.7%.

The highest annual increases (7.7%) were once again seen in the rest of the country’s towns which rose in selling price by an average of €10,000 in 2018 and which experienced a 0.85% rise in Q4 to an average of €157,717.

“In these areas, you largely have the perfect storm of affordability within the 10% deposit range, and no new homes as it is still uneconomical to build in many places,” said REA Spokesperson Barry McDonald.

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