Remote Work shifts Housing Demand and Pricing

RE/MAX Q3 Residential Report charts Regional Price Hikes

Anecdotal evidence that Covid lockdowns and working from home has changed housing demand and residential property values in city suburbs and rural towns is borne out by Q3 figures from RE/MAX Ireland this week.

The independent real estate group published its latest average list prices for the counties and suburbs where it operates, revealing price hikes varying from a 2.3% increase in Dublin’s hip Stoneybatter D7 neighbourhood, to a massive 17.5% YOY change in County Waterford list prices. 

Waterford city, meanwhile, saw a more modest 6.3% list price increase, while Dublin overall saw an average 4.9% increase in prices YOY.

Average list prices nationally increased by 9.1% over the same time last year, with the average list price for homes nationwide in Q3 2021 put at €287,704.

Business Boost

RE/MAX agents have seen a considerable boost with a growth in demand from those relocating from cities in the past eighteen months, Paul Gartlan, Regional Director of RE/MAX Ireland, commented, especially as the group has a strong regional presence, he says.

“Demand for property has shifted slightly from city-centre apartment living to two and three-bedroom houses in the larger suburban and rural towns”.

Gardens and garages are also a ‘big ask’ the estate agency boss says, as people relocating express delight at being able to afford to live in an actual house, with space around it, rather than a small flat or town-house, Gartlan adds.

“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”.

Modest price increases are being recorded in the Dublin suburbs too, the RE/MAX Q3 Report outlines.   In west Dublin areas, like Lucan, the average list price is now €326,782, up 5.4% YOY.  Tallaght in South County Dublin has an average list price of €619,852, a 4.8% increase over the same time last year.

Regions Revival

Dramatic price improvements are being recorded in larger towns in coastal counties, it seems, as many recently turned their long-term plan to escape to the country into a short-term reality.

Amber Young, RE/MAX Ireland Head of Operations and Q3 market report author, says; “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”.

In Munster, city home prices didn’t match the price increases seen across the counties. 

Limerick City, for example, had an average list price of €230, 585 in Q3, and YOY growth of 8.4%; while Limerick County house prices were not far behind on €216,371, having gone up nearly 11% (10.8%)

Munster overall saw a 13.6% Q3 increase in house prices YOY, and housing supply was down almost a third (31%) for the southern region, in comparison to September 2020, the RE/MAX figures show.  Transactions were up around 22% for Munster in the six months to July 2021, versus the same period the previous year.

Average list price in Waterford City was €204,759, up 6.3%, while pricing in the County grew dramatically, up 17.5%, to an average price of €270,171, with highest demand in coastal areas. 

In Connaught, County Roscommon had a similar leap in house pricing, with an average list price of €167,403, representing a 17.3% YOY increase. 

While Galway County recorded an average list price of €234, 873, up 14.3%, the average city list price was €316,060, increased just 3.1%.

Connaught/Ulster overall saw a 15% increase in prices YOY.  Transactions were up 37% for these regions in the six months to July 2021, versus the same period last year, with housing supply down 36% for Connacht/Ulster, compared to September 2020.

For the Rest of Leinster, outside Dublin, housing supply was down 41% for the area (excl. Dublin) when comparing 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 YOY, although the major price growth was outside of Dublin in the surrounding commuter counties.

In Carlow, the average list price was €226,391, and the YOY change was a 14.4% increase. Kildare saw average list prices reach €307,726, and 11.7% YOY growth in asking price.  For Westmeath, average list price was €240,875 and a change in price of 10.9% upwards.