Auctioneers are predicting that residential property prices in Galway will increase by another 10% in the coming year.
Separate reports published in the last few days have forecast price increases in the county of 9% and 10% and around 10% for the city.
In the county, a lack of supply of ‘suitable’ housing stock is continuing to drive up prices, while in the city, price growth is being fuelled by first-time buyers.
According to the report from the Real Estate Alliance (REA) group, prices in the county for three-bed semis rose by 4% in 2016.
“Prices in county Galway are expected to rise by 9% over the next year, according to REA Ger O’Toole in Portumna, with the increase being fuelled by the lack of supply of suitable homes on the market.
“The price of the average three-bed semi in county Galway increased by 4% in 2016, rising from €125,000 to €130,000,” the report reads.
The ‘Property Price Guide 2017’ published by the Sunday Times put the 2016 average increase in the county at 8%, with a 10% increase predicted for the coming year.
“Increased confidence, combined with a limited supply of houses coming to the market, pushed values to their highest levels in years,” the report reads.
Meanwhile in the city, REA expects that lack of supply and first-time buyer activity will drive prices up a further 10% this year, following growth of 11.9% in 2016.
“Supply is still very tight in Galway and there are no new developments in the city.
“There seems to be a lot more property coming on the market through receivers. Buyers are more incentivised to purchase new homes but there are so few new builds,” said Kevin Burke of REA McGreal Burke.
The survey found that prices in the city had increased by €25,000 over the past year – with the average three-bed semi now costing €235,000.
See full coverage in this week’s Connacht Tribune.