Sales down, but values up

FIGURES released this week by website Myhome.ie confirm that the number of sales transactions in 2016 fell by 3.5pc on the previous year, to 47,500. The total value of transactions was up 7.5pc. This is in tandem with an average increase in values of 8.1pc nationally for the year.

These figures are of real concern and highlight the continued lack of suitable stock in locations where they are most needed. It only serves to highlight the need for an immediate increase in the delivery of new housing units by both the public and private sector. On the plus side, planning permissions are up nearly 50pc on this time last year. It is essential, though, that these permissions are followed through on and the houses are constructed without delay. If many are located in areas where it is not yet profitable to construct new homes, it will be of little benefit to the market in the short term. Let’s not forget these permissions last for a period of five years.

Dublin accounts for 31pc of all sales that took place over the 12-month period. This figure will continue to rise as the population of Dublin increases at a much faster pace than the rest of the country.

Another significant number is the 18,900 properties currently listed for sale on Myhome. ie, a decrease of 12pc on last year’s figure and less than 1pc of the national housing stock (two million). In a normally functioning market, the figure would be up to three times higher.

The most expensive residential property sold in Ireland in 2016, according to the Property Price Register, was the Lyons Estate in County Kildare for €12m. The cheapest was for €5,900 in Claremorris, Co Mayo.