House buyers prepared for hour long commute - survey

A new wave of house buyers are prepared to commute for over an hour from Dublin to secure affordable properties, according to a national survey carried out by Real Estate Alliance (REA).

The figures come after a report by the Economic and Social Research Institute (ESRI) warned market trends could revive the “unsustainable” boom-era practice of long-distance commuting between Dublin and its hinterland.

The ESRI said lower prices outside Dublin and Central Bank loan caps could force households to seek housing beyond the capital.

The Q1 REA Average House Price Survey has revealed price rises in outer commuter ring locations such as Laois and Offaly are being driven by Dublin-based first-time buyers being forced further out from the capital by the Central Bank’s deposit rules.

REA also report seeing a decrease in the amount of first-time buyers between the ages of 25-40 attending viewings in the Dublin housing market in the first quarter of 2016.

The survey concentrates on the sale price of Ireland’s typical stock home, the three-bed semi-detached property. On average nationally, it now costs €191,194, a rise of €2,824 (1.5 per cent) on the figure to the end of December.

The average price of a three-bed semi in Dublin City and County has risen by 0.6 per cent from €332,000 to €334,000 in the first three months of the year.

REA said that while prices have risen slightly by €2,706 (1.31 per cent) to €209,559 in the commuter counties and main cities such as Cork and Galway, these rises are confined to the few towns that have new developments on the market.

The biggest growth has been in towns in the rest of the country where prices have risen by 9.58 per cent in the past year, and 2.59 per cent since December, with the average three bed semi increasing from €122,161 to €125,321.

With prices rising by 5.1 per cent, and viewings up substantially, Limerick was Ireland’s fastest growing city in Q1, with three bed semis increasing by €8,000 to their current level of €165,000.

Growth continued in Cork city (1.75 per cent) and Waterford (1.61 per cent), while the market in Galway remained static in Q1, with no new developments expected until 2017.