Estate agents predict 5-10% rise in city prices

Local estate agents have rejected a prediction in a nationwide survey that property prices will rocket by 15% in Galway City this year.

But the market here is continuing to recover, with one auctioneer describing the past year as “a different world”.

In 2014, there were more than €300 million worth of sales in the city and county – up a massive 43% on last year.

Last week, the Real Estate Alliance network produced a survey for a national newspaper, which forecast a 15% increase in asking prices in the city, and an 8% increase in the county.

Niall Browne of O’Donnellan & Joyce Auctioneers said the market in the city has been very steady over the past six months, and any percentage growth in prices is likely to be single digit in 2015.

“It’s like a different world. We concluded 214 private treaty sales up to the middle of December. That’s up from 112 the previous year. And around 250 properties were sold at auction, too.

“At the start of 2014, everybody seemed to become more confident, and by May/June/July, we saw panic bidding, where five or six people were bidding on each property because of the shortage of sellable stock.

“Things softened after that, and I think people now know exactly what they want, and exactly what they want to spend. 15% will not happen, it’s likely to be 5-10%. 2015 will be steady,” said Mr Browne.

He said there is still a shortage of suitable stock for sale, but banks have been helping the process.

“There is very little sellable stock out there, the stuff that’s really in demand. Family homes in Salthill and the likes, and three- and four-bed semis in Knocknacarra, are the ones that are in demand.

“A lot of people are in negative equity and they just can’t afford to sell, but banks have begun to help this along by introducing negative equity mortgages,” he said.

Official figures from the State’s Property Price Register show that up until mid-December (the most up-to-date figures available), there were a total of 1,912 residential properties sold in Galway.

That figure is up 37% on the number of sales closed during the exact same period in 2013 (a total of 1,393).

The value of the sales is up 43% from €211m to €301m.