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When we first entered the beginnings of an economic shutdown at the latter end of Q1 in 2020, much of the country deemed the property market a slippery slope with high volatility. The country was introduced to an increase in unemployment along with the newly founded remote working era. However, what has been a fluctuating year in many industries has resulted in the property market remaining strong, even stronger than the previous year of 2019. Over the last 12 months property prices have steadily increased across the nation. Why is this the case, and how has this market prevailed where so many others declined?
National Average - House Sale Prices
When comparing Q1 of 2021 to the same timeframe of 2020, we have seen an average increase of 7.6% in property sale prices nationwide. The national average sale price for a property in Ireland now stands at €275,751.
Factors for Growth - Irish Property Market
What explains a steady growth in the strength of the Irish Property Market during a time of constricted economic activity? Although many industries were operating through limited means, many turned to remote working to maintain an influx of income. When considering the continued income streams of the country combined with the reduction in travel costs and lack of social activities, much of the country has reduced their expenditure drastically while maintaining a strong income.
Along with much of the country residing in better financial positions, people have also spent a fortune of time within their existing homes and have realised the importance of a multi functional home. This has invigorated thought processes leading to either enhancing their existing home or a desire to move into new premises that better provides for remote working and home based activities. People have worked from home, created home gyms, leisured at home and even socialised from home and this is set to continue into the future - even post lockdown.
Amongst the varying reasons by which property demands have soared and thus, strengthened the property market. The last 12 months have seen minimal property developments. Projects have been postponed, started/stopped and even cancelled. In a country that has had an ongoing issue of lack of house supply over the last number of years, this construction disruption has increased the weight placed on home buyers when finding a home. As of March this year, the supply of advertised homes nationally was down 40%.
What does this mean for Landlords & Buyers?
Evidently, the housing market is strong. Buyers are awaiting newly listed homes to become available on Daft.ie to purchase, and when homes are made available the influx of enquiries is substantial, regardless of the property’s characteristics or location - a strong demand remains. The prediction of the reduction in housing prices near city centres due to the changing status of previous office workers has been far skewed and evidently inaccurate.
Overall, the property market is strong, despite lockdown and the reduction of the nation's economic activity. Our advice to landlords is sell and to sell now.
Your Home, Our Priority.
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