Irish Housing Prices Predicted to Increase by 6%, SCSI Report Finds..
Dublin: The Society of Chartered Surveyors Ireland (SCSI) has released its annual report, forecasting a 6% increase in Irish house prices. This projection surpasses the 4.5% growth predicted by SCSI agents during the summer of 2024.
Key Drivers of Price Increases
The report identifies several factors contributing to the rise in house prices:
- Limited Supply: A lack of homes coming to market is cited by 76% of estate agents, up significantly from 40% in the previous year.
- Economic and Policy Influences: Low interest rates, increased credit availability, and the “Help to Buy” scheme supporting home purchases are driving demand.
- Infrastructure Challenges: Insufficient basic facilities, such as water, electricity, and sewage treatment systems, are hindering the development of new housing.
SCSI Vice President Gerard O’Toole emphasised that increasing the supply of new homes is the only sustainable solution to curb rising prices. He called for additional resources to address infrastructure deficits that prevent the development of residential land.
Regional Trends and Affordability
The report highlights regional variations in housing affordability:
- Counties Meath, Cork, and Galway: Previously affordable for first-time buyers, all types of homes in these areas are now experiencing price increases.
- Kildare and Wicklow: While two- and three-bedroom terraced houses remain affordable, their prices are rising, reflecting broader trends in commuter counties.
- Dublin’s Commuter Belt: Three-bedroom semi-detached homes are still within reach for many buyers in counties like Kildare and Wicklow. However, property price growth in these areas is now outpacing income growth, creating affordability concerns.
Concerns About Unsustainable Growth
The report reveals that 80% of SCSI members believe house prices are currently too high, with 61% predicting that while prices will continue to rise in the short term, they will eventually stabilise or decrease. Vice President O’Toole described the current property inflation rate of 10% as “unsustainable” and stressed the urgent need for measures to address supply constraints.
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