Three-bed semis in Dublin’s suburbs are reaching sale agreed in days as a wave of mortgage-approved buyers chase family homes rather than city centre apartments, the Q1 REA Average House Price Index has found.
Actual selling prices in Dublin city rose by 3pc in the last three months, and the average three-bed semi in the capital is now selling at €558,250 – a rise of almost €50,000 in the past year.
The REA Average House Price Index concentrates on the sale price of Ireland’s typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.
“There is a marked change in the Dublin market, with buyers looking at homes in the suburbs, while city centre property is proving less attractive,” said REA spokesperson, Seamus Carthy.
“Both owner occupiers and investors are turning their attentions away from city centre apartment living, according to agents REA Halnon McKenna.
“Increased wage levels going into 2025 are leading to higher mortgage approvals and increased choice for buyers.
“As a result, quality properties are being snapped up quickly in the suburbs.”
The market in the capital’s suburbs has started 2025 at a rapid pace, according to Dublin agent Anthony McGee of REA McGee.
“Stock is increasing, and we are seeing a large cohort of loan-approved purchasers at viewings,” he said.
“In the last few weeks, we have sold two properties in Rathfarnham within days of their first viewings, with most family homes on our books reaching sale agreed within a fortnight.”
The absence of new home building, and historically low supply has seen three bed semi-detached homes in parts of Donegal, Kerry, Mayo, Offaly and Roscommon increase by over 23pc in the past year.
“The market has been very active over the past four weeks after a significant pause nationwide because of the effects of Storm Éowyn,” said Mr Carthy.
“There is an improvement in supply, and any new stock on the market is selling very quickly.”
The actual selling price of a three-bed, semi-detached house across the country rose by 2.5pc in the past three months to €338,847, and 10pc overall annually.
But towns such as Castlebar, Tralee, Milford, Castlerea and Tullamore are reporting unprecedented annual rises of up to 27pc due to multiple buyers bidding on scarce properties.
Prices in the major cities outside the capital rose by an average of 3pc to €355,250 in the last three months – an annual rate of increase of 8pc.
Galway city three-bed semis increased by €10,000 for the third quarter in a row to an average of €380,000, reflecting an annual rise of 10pc, with the market showing no signs of slowing.
Cork (€395,000), Waterford (€321,000) and Limerick (€325,000) saw quarterly rises of 1.3pc, 2.9pc and 1.6pc respectively – with homes in Limerick now reaching sale agreed in three weeks on average.
Homes in the country’s large towns continue to show the biggest annual growth nationwide, 2.9pc this quarter and 13pc on last March to an average of €256,576.