NI property prices increase 6.2% with average house price hitting €181,225

Low volume of transactions and stable prices recorded in Ulster University index

The volume of sales in Northern Ireland increased 3.1 per cent in the second quarter compared to the same period in 2017. Photograph: iStock

The volume of sales in Northern Ireland increased 3.1 per cent in the second quarter compared to the same period in 2017. Photograph: iStock

 

Property prices in Northern Ireland increased at an annualised rate of 6.2 per cent in the second quarter of the year, with the average price reaching £162,215 (€181,225).

Ulster University’s quarterly house price index shows a relatively low volume of transactions compared to the Republic, at 2,116, with property prices increasing at a far more stable rate.

“There are a number of factors that support this sustainable growth, including continued affordability in comparison to the majority of UK regions, availability of new homes within the first-time buyer market and low levels of unemployment, with wages starting to gain on inflation throughout 2018,” said Michael Boyd, deputy chief executive of Progressive Building Society.

With house price increases running around three percentage points above UK inflation, the report indicated that estate agents’ perceptions are “reasonably positive” with continued demand for housing. Sales volume in the period grew 3.1 per cent.

While the figures indicate a “relatively healthy residential housing market”, according to Karly Greene, head of research at the Northern Ireland Housing Executive, economic and political uncertainty and the rise in interest rates in the UK mean “ongoing monitoring will be particularly important”.

The distribution of sale prices has remained steady compared to the first quarter with the share of properties at or below £100,000 comprising 23 per cent of properties sold with those at or below £150,000 accounting for 58 per cent of transactions.

In terms of property type, detached houses were the top performers, with an average price of £239,826, up 2.5 per cent on the year, and terrace houses or townhouses commanding an average price of £105,889.

South Belfast was the most expensive region, commanding an average price of £240,978, while north Belfast had the lowest average price of £116,623.