First time buyers accounted for less than half of the new homes bought in Ireland last year, according to the latest Residential Review and Outlook from Auctioneers Sherry Fitzgerald. The figures show that investors are buying an increasing share of the new homes being built and now account for almost 30% of all new purchases.
Sherry Fitzgerald also says that the cost per square metre paid for new homes rose by 24% last year to €3,382. Investors, however, are opting for relatively more expensive units, paying an average of €4,144 per square metre, 37% more than first time buyers.
The figures also show that almost 40% of those who purchased new homes last year did so alone, without a partner.
They also reveal that an increasing proportion of buyers had been living with their parents before they purchased. Sherry Fitzgerald found that the proportion living with their parents rose to 52% last year, up from 45% in 2002.
According to Sherry Fitzgerald second hand house prices rose by almost 15% last year with first time buyers accounting for one third of the second hand homes.
Another one fifth (21%) of the second hand houses were bought by investors. However, investors also accounted for 27% of those who sold second hand homes. This suggests that investors reduced their stake in the second hand property market in 2004. This is in sharp contrast to the observation that investors are becoming bigger players in the new house market.
Last week, in its first Irish Property Review for 2004, Bank of Ireland said house price inflation will be at 6% this year, down from 14% last year, bringing the average price of a house in Ireland to €291, 000, and in Dublin to €385, 000.
* Since its launch a year ago, the First Active Current Account Mortgage, has issued over €500m in loan offers. The account combines a current account with a mortgage.
First Active says the account's popularity is due to the fact that it saves the customer money on their interest payments.
