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The Journal
17 minutes ago
- The Journal
Housing prices jump as completions predicted to fall 'well short' of units required
NATIONAL ASKING PRICES are up 7% over the year – with some counties seeing jumps of up to 19%. MyHome's report, produced alongside Bank of Ireland, on asking prices for homes in Ireland has been released today. It reports on Q2 of 2025. It shows that asking prices for homes in Galway have reached €350,000 in an increase of close to 13% on the year previous. In Donegal, asking prices climbed up to 19% to an average of €255,000. In Leitrim, there was an increase of just over 13% since the year previous, with asking prices averaging out to €198,000. On top of the increase in asking prices across the country, the report also found that typical residential transactions are being settled for 7.5% above the original price. This trend has been driven by several factors, it reported, which include 'significant increases' in both the volume and value of mortgage approvals, persistently inadequate supply, and the loosening of mortgage lending rules. Meanwhile, the report found asking prices nationally rose by 4% on the quarter, by 2.2% in Dublin and by 5.4% in the rest of the country- meaning the median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Housing completions Advertisement The average mortgage approval in May was €337,000, up 6.7% on the year, and the average first time buyer borrowed 3.4 times their income in 2024. This is up from 3.2 in 2022. The report noted that although home completions are likely to improve this year on last year, the supply will still fall 'well short of the demand'. The author of the report, Chief Economist at Bank of Ireland Conall MacCoille, added that alongside higher mortgages and properties for sale tending to be sold for a significantly higher sum than asked, average mortgage approval in may this year was up 6.7% on the year. The report stated that this was helped by the annual pay growth of 5.6% in the Irish economy. There were 43,070 mortgage approvals in the year to May, up 10.5% on 2024. One in six properties is sold by 20% or more over asking price, indicating that competition for homes remains fierce. 'Another factor at play is loosening of the Central Bank mortgage lending rules. The average first-time-buyer borrowed 3.4 times' their income in 2024, up from a 3.2x multiple in 2022. This change has pushed up house prices by €15,000 to €20,000,' MacCoille said. He said that Irish house price inflation is more likely to return to mid-single digit category with a steady proportion – just under 50% – of first time buyers taking out a mortgage between 3.5 to 4 times their income He said that some improvement in home completions was likely in 2025. 'The '4Dublin Housing Supply Pipeline' figures, the only survey of current homebuilding activity, shows the number of houses under construction in Dublin at end-2024 up 19% on the year.' The figures indicate that at end-2024 there were 16,260 apartments and 3,185 houses under construction on 188 active sites in the capital, up 24% and 19% respectively on late 2023. Related Reads 'They're still rooted in the last war': Taoiseach says banks are not lending enough to Irish builders Explainer: Why does the Government want to overhaul Rent Pressure Zones? However, he warned that attention should focus on difficult problems surrounding build costs and the viability of apartment development in Ireland over the medium term. 'Whatever the outcome for housing completions in 2025, it will fall well short of the 50-60,000 units required.' Newly introduced rent controls would likely serve to eliminate the two-tier rental market, as RTB figures from end-2024 show new tenants were paying on average €240 per month in rent more than those in existing tenancies, MacCoille added. The average time to sale agreed is now 2.6 months. This is close to a historic low and 'indicative of a very tight market'. 'RTB data indicates average monthly rents were €1,670 at end-2024, up 5.5% on the year – close to the softest pace of rent price inflation in almost four years. Rent reforms will likely mean the pricing gap between new and existing tenancies will be eliminated.' It was noted that the threat of US tariffs did not put a dent into the demand for housing within the country. The median asking price for new instructions nationally was €395,000 in Q2. In Dublin it was €495,000 and in the rest of the country it was €340,000. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Journal
18 minutes ago
- The Journal
Focus on new build delivery before First Home scheme expansion to second-hand homes, says Martin
TAOISEACH MICHEÁL MARTIN has dampened expectations that the First Home Scheme will be extended to second-hand homes in the short-term, stating that the focus now must be on new build delivery. The First Home Scheme is a shared equity scheme for first-time buyers that involves the government and participating banks paying up to 30% of the cost of the home in exchange for a stake in it, which can later be bought back by the home buyer. Currently, the scheme is only available to first-time buyers who are purchasing a newly built property or building their own. The programme for government includes a commitment to expand the scheme for first-time buyers of second hand homes, but the Taoiseach told The Journal 'the exact timeline by the time it will happen is open, it is not decided yet'. Tempering expectations that there could be an announcement on it in the upcoming budget, the Taoiseach said the government's focus right now is 'supply, supply, supply and new builds'. 'Do we concentrate on getting new builds first? I mean, it's on the agenda, but we have to get the new builds, the incentives have to be towards new builds. And the price of housing is increasing. So would it [expansion to second-hand homes] add more to that?' the Taoiseach said. Advertisement Previously, Housing Minister James Browne told The Journal that concerns had been raised that extending the First Home Scheme to second-hand homes could increase house prices. The Taoiseach confirmed this was the case, stating 'some have'. 'That's a fact that we have to look at. But to be honest with you, the priority really is to try and get more new builds started, and to get the private sector building more new builds. The state is doing all the heavy lifting at the moment,' he said. Martin said an increased the allocation of €700 million was put into housing this year, adding that he thinks more money will need to be pumped in to it by end of the year so as to allow for more funding to be allocated to housing schemes. He reiterated his disappointment with last year's final housing delivery figures, stating that the 50,000 target per year has to be met due to the rising population. However, he also questioned whether the target of 50,000 is high enough. 'Whether that deals with the population growth is still an open question,' he said, stating that the Irish population has gone up a third in two decades. 'That's massive. So housing supply is the key and that's why we have taken the measures we've taken so far… they're all building blocks,' said Martin. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
Irish Examiner
19 minutes ago
- Irish Examiner
Kerry engineering firm Tricel announces new partnership with Xylem
Irish engineering group Tricel has acquired Lowara Distriburions as part of a new partnership agreement with water technology firm Xylem. Founded in 1973 as Killarney Plastics, Tricel has grown into a leading global engineering group, working across water storage and pumping, wastewater and stormwater management, and construction and distribution. Tricel announced the strategic partnership with Xylem on Monday and will now be the exclusive distributor of Lowara products in the Republic of Ireland as part of the new agreement. 'This partnership with Xylem represents a pivotal moment for Tricel,' said Tricel chief executive Mike Stack. 'By combining our engineering expertise with Xylem's distribution strength and the renowned Lowara brand, we will deliver a more comprehensive portfolio and enhanced technical support to customers of all scales across Ireland.' Lowara Distribution Ireland operations manager Richard Keegan said the new agreement will allow Lowara to leverage Tricel's market presence and "deliver Lowara's energy-efficient pumps and systems through their established channels". Tricel was started in 1973 by Anne and Con Stack in Killarney. The company initially produced products from glass-reinforced plastics (GRP) for the local community. In the 1990s and 2000s, the company expanded its exports, before embarking on an acquisition strategyto establish manufacturing facilities throughout the UK and Europe. The company employs more than 600 people supplying a range of products including storage tanks, pumps, sewage treatment tanks, construction products, and lubricants.
