Property prices set to grow 8% this year, predict SCSI

The average price of three-bed semi-detached houses here is set to soar by up to 8% this year, according to the Society for Chartered Surveyors Ireland.

In further bad news for the rental market, costs are also expected to swell by between 5% and 7%, depending on location.

The survey of more than 700 estate agents and chartered surveyors in the SCSI Residential Property Report found the price of property went up 8.8% across the country last year and that trend is set to continue.

House prices in Dublin rose 19.5% in 2014 but last year moderated to 4.8%.

The SCSI credited the Central Bank’s lending rules for slowing down price growth in the capital, which caused a swell in property values in neighbouring counties.

John O’Sullivan, chairman of the SCSI Residential Agency Professional Group, said: “The ongoing economic recovery is starting to spread across the country.

“Further increases in property values in the regions can be expected in 2016 as incomes and expectations for the future continue to improve.

“The outlook remains fragile however and is dependent largely on employment opportunities and investment for regional towns.”

After rental values climbed by 12% nationally in 2015, this looks set to continue as there is still a shortage of supply.

Two thirds of experts also agreed the rent-free legislation will lead to further price hikes for tenants.

Mr O’Sullivan said: “Allied to this, the collapse in construction output has resulted in virtually zero supply of social housing units to accommodate the growing social housing lists.

“Consequently, these tenants have had to seek accommodation in the private sector, putting further pressure on limited supply.”

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