According to the Society of Chartered Surveyors Ireland, estate agents predict a 4.5% increase in property prices nationally over the next year, up from a previous estimate of 1%. This reflects the impact of low housing stock levels, with three-quarters of agents reporting a shortage. Additionally, factors such as the economy, interest rates, and credit availability affect prices.
Agents also expressed concern about the widening affordability gap in the market. A study showed that a couple with a combined salary of €107,000 could only afford a new 3-bed home in Meath with the help of the First Home Scheme. Homes in Wicklow and Kildare were deemed out of reach for buyers on similar salaries.
The construction sector shows positive signs, with stable costs and falling interest rates. Addressing supply and reducing costs are seen as urgent steps to tackle property price inflation. The SCSI highlighted the need for planning reform, local authority resourcing, and lower development charges to support homebuilders.
Overall, the property market faces challenges related to supply, affordability, and regulatory issues, emphasizing the need for comprehensive solutions to ensure sustainable growth.