IT was a year of two halves in the residential property market – pent-up demand, plenty of cash buyers, shortage of supply and frenzied bidding wars led to double digit price growth for the first half of the year.
That’s according to Majella Galvin of DNG Galvin Bandon, and chair of Society of Chartered Surveyors Ireland (southern region). But the temperature cooled in the second half of the year as a consequence of economic conditions such as rising interest rates and inflation, she said.
‘Supply also saw a slight increase particularly in the second-hand market. Of course, the continuing exodus of landlords from the market is a factor here also. Buyers began to adopt a more cautious approach when faced with uncertainties and greater supply. This put a damper on bidding wars and prices rose at a more sustainable rate,’ she said.
New homes and energy efficient properties were most in demand, which, Majella said, was influenced by the Help to Buy Scheme.
‘The appetite to purchase older homes requiring renovation has diminished with buyers seeking turnkey, energy-efficient homes due to the cost of renovation, a lack of available building contractors and rising energy costs.’
A renewed interest in work/ life balance and quality of life issues, together with the increase in cost of living is resulting in more people revaluating their needs, she said.
‘This is particularly evident among the older age group, empty nesters who are considering selling their larger houses in search of a low maintenance energy efficient home.
‘However low stock levels mean it’s a real challenge to find an alternative property resulting in many opting to sit on the fence.’
Majella feels the market will remain robust for 2023, but the level of price growth will continue to moderate with low single-digit house price growth anticipated for the year ahead. And the year is already off to a busy start. Viewing requests have already come in from Dublin, UK and Limerick.
‘I’ve had three calls from people in the UK looking to return to Ireland, one from Dublin looking to return to West Cork and one from Germany whose partner is Irish and they are looking to return to West Cork,’ she said