In May our average selling prices were 8% over asking, the highest figure we have recorded since April last year. Just over half of our properties were agreed above asking, 8% below. This performance is driven by a chronic shortage of properties for sale in our key markets, and our total number of sales were down 22% compared to the same period last year. As always different property types, prices and locations performed very differently. Demand and in turn selling prices were strongest for houses in turn-key condition. Rent controlled apartments and houses requiring refurbishment were more challenging to sell. 83% of our buyers were owner occupiers, 60% of them were first time buyers. Investor demand was down, they accounted for only 17% of our buyers.
Earlier this year the CSO reported Dublin house prices had fallen marginally in the first three months. This data would have been based on transactions at the end of last year. We assume later this year data from the CSO will confirm what we are seeing on the ground since January: strong demand, strong selling prices and an increase in prices despite rising interest rates. Estate agents don’t want to see this level of inflation in property prices, hopefully the supply of homes coming to market will increase, buyers will have more choice and price inflation will cool.
In the rental market our average monthly rent was €2,703 per month. Just under half of our tenants were working in the technology sector and half were European.
Key highlights from our May transactional data:
- Our average selling price was €577,418 or €649 per sq. ft.
- Average selling prices were 8% over asking.
- We saw an increase in owner occupier demand.
- 33% of buyers required no mortgage funding.
- The average age of our buyers was 37.
- Average selling times were fast at 6.4 weeks.