A new report from real estate group RE/MAX Ireland backs up anecdotal evidence that remote working has caused residential property values to increase in city suburbs and rural towns, as demand continues to rise.
The figures for the third quarter of this year reveal price hikes varying from a 2.3% jump in Dublin's Stoneybatter D7 neighbourhood, to a massive 17.5% year-on-year increase in list prices in County Waterford.
However, Waterford city saw a more modest 6.3% list price increase, while Dublin overall saw an average 4.9% increase in prices compared to the same time last year.
Across the country, average asking prices increased by over 9%, to stand at €287,704 between July and September.
Relocating
Paul Gartlan, Regional Director of RE/MAX Ireland said agents have seen increased demand from those relocating from cities in the past eighteen months.
"Demand for property has shifted slightly from city-centre apartment living to two and three-bedroom houses in the larger suburban and rural towns," he said.
Mr Gartlan said gardens and garages are also a "big ask" from customers.
"The availability of sheds or garages are high on the list of home-owners demands, usually to convert to a home office, gym or workshop," he added.
Modest price increases are being recorded in the Dublin suburbs too, the report shows.
In west Dublin areas, like Lucan, the average list price is now €326,782, up 5.4% compared to the same time last year.
Meanwhile, Tallaght in South County Dublin has an average list price of €619,852, a 4.8% increase over the same time last year.
Price rises in coastal counties
The report shows that price increases are being recorded in larger towns in coastal counties.
"Confidence in improving broadband, employer assurances around hybrid working, and the attraction of greater indoor and outdoor space link directly to the pandemic and the lifestyle lockdowns forced on people in the last year," said Amber Young, RE/MAX Ireland Head of Operations and author of the report.
Munster overall saw a 13.6% increase in house prices in the third quarter compared to the same time last year, and housing supply was down almost a third for the southern region, in comparison to September 2020.
The data shows that transactions were up around 22% for Munster in the six months to July 2021, versus the same period the previous year.
Meanwhile, Connaught and Ulster overall saw a 15% increase in asking prices during the period.
For the rest of Leinster, outside Dublin, housing supply was down 41% for the area, when you compare last September’s figures to those from September 2020.
Transactions were up 38% for the region in the six months to July 2021, versus the same period last year.
Leinster overall, including Dublin, saw an 11.4% increase in prices year on year, although the major price growth was outside of Dublin in the surrounding commuter counties.
In Carlow, the average list price was up 14.4% to €226,391, while Kildare saw average list prices jump 11.7% to reach €307,726.
