The average price of a second-hand 3-bedroom semi detached house in Connaught declined by 7.5% in 2012. This compared with a 16.2% decline in 2011 according to the Society of Chartered Surveyors Ireland (SCSI) annual survey of its estate agent members.
The SCSI said that while average values fell in 2012, the Mortgage Interest Relief (MIR) deadline stimulated demand in the final quarter of the year and that a lack of supply of family-type homes, at the right price, was now emerging.
Gerard O’Toole Vice Chairman of the Western Region of the Society of Chartered Surveyors Ireland said the figures showed that Ireland in 2013 was no longer dealing with a property crisis, but the legacy of that crisis.
“How we deal with the legacy issues under our control will have a major bearing on the future of the property market in this country. 2012 was very much a year of transition with increasing levels of residential transactional and rental activity being experienced.
“However, the lack of uniformity in property values and the emergence of ‘micro markets’ - suggests that there will not be a single point at which the market hits the floor and recovery begins. Rather different types of property in different regions will experience variations in peak-to-trough prices and will recover at different times” O’Toole said.
The SCSI survey also suggested that there continued to be strong levels of activity in the residential rental market in 2012 albeit that rental values in the west declined by an average of 3.2 per cent compared to a decline of 6.6 percent in 2011.