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There has been a drop in the number of cash buyers snapping up properties

A new housing report found that 97% of property professionals believe house prices in Dublin will increase further in the next 12 months.

Image: house via Shutterstock

CASH PURCHASERS ACCOUNTED for about 35% of house transactions in the second quarter of the year - a drop from 50% for the first quarter.

The new housing report, published by the Society of Chartered Surveyors Ireland, indicate that the level of cash transactions is beginning to moderate.

The SCSI – which is the professional representative body for estate agents and construction professionals – said the new finding suggest that mortgage availability has improved.

Who’s buying?

First time buyers accounted for 44% of transactions, while movers accounted for 29%.

About 22% of units were purchased as Buy to Let or investment properties.

The report found that the pace of sales activity levels in the property market (sales enquiries, sales agreed and sales completed) increased in the second quarter of the year.

It suggested that, “this moderate improvement in housing mobility may be due to some properties lifting out of negative equity and the availability of products which allow people to move and retain their tracker mortgages.”

Simon Stokes, Chair of the Residential Property group of the SCSI, said, “There has been an improvement in confidence from investors in the property market, which has been supported by improved yields and finance availability.

This should help improve the quality of rental stock but we still need to see more housing being built to improve supply levels and moderate the pace of rent increases.

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Looking forward

The report is based on a survey of property professionals across the country.

It found that 90% of respondents believe average national house prices will be higher in 12 months time, with one in three believing they will rise by 5%.

While 97% believe Dublin house prices will rise over the same period, one in four saying they will be 10% higher.

Stokes warned that the lack of supply – especially in Dublin – remained a key issue.

Ninety per cent of respondents in Dublin believe there is a greater demand for housing than supply and 70% believe that demand will continue to outstrip supply in Dublin in 12 months’ time.

“However the situation in the west and mid west is very different with 60% and 80% respectively believing that supply is greater than demand and that is an issue which also needs to be addressed.”

Read: These luxury apartments were nearly all snapped up by cash buyers>

Read: Bidding opens on the first ever online-only property auction today>

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