Mixed news for homeowners and potential buyers as prices continue to rise

House prices in Salthill – traditionally one of the most sought-after addresses in Galway – jumped by around one-fifth over the past year, new research has shown.

Despite a lack of building activity, local auctioneers O’Donnellan & Joyce are reporting a renewed confidence in the property market in the city, which is driving prices up.

And they estimate prices could rise by up to 8% over the coming year in Salthill.

And two-bed apartments in Knocknacarra – whose values tumbled during the property crash – have increased in price by a whopping 50%.

According to the Sunday Times Property Price Guide 2015, across the city, prices will increase by between 5-10%. The survey relied on figures provided by O’Donnellan & Joyce and Sherry Fitzgerald.

The average price of a new home in the city now stands at €280,000, while a secondhand four-bed semi in the suburbs sites at €250,000.

As a whole, prices in the city increased by around 10% during 2014.

There was a lot of activity in the city property market – particularly in the second half of the year – because of the December 31 deadline on the Capital Gains Tax exemption scheme. Any property purchased before that date and held for a period of seven years is exempt from CGT.

“The last quarter of the year saw investors looking to beat the deadline for CGT exemptions. Family homes were popular and rents were up,” the report reads.

Three-bed semis saw an increase in value of more than 13% over the past year, from €185,000 to €210,000, and are expected to increase a further 5% to €220,000 by 2016.

Four-bed semis rose 9% in price from €220,000 to €240,000, and are predicted to increase by another 4% to around €250,000.

Knocknacarra

The average price of a new home is €270,000 or €240 for a secondhand property – up 15% during 2014. Agents expect a further 5-10% increase in price during the coming year.

“Three- and four-bed semis and family homes were above the market average. There were signs of renewed activity as the year went on, but the vast majority of movement came from owner-occupiers who were encouraged to sell as prices rose, rather than developers building new homes,” the report reads.

During the past year, O’Malley Construction finished out the Leargán development on the Western Distributor Road, and Burkeway Homes announced the construction of more than 70 new homes on the Upper Ballymoneen Road in a €20 million project.

One-bed apartments increased in price by 25%, from €85,000 to €100,000 and are expected to remain static this year.

Two-bed apartments increased by 50% – from €100,000 to €150,000 – and are set to be valued at around €160,000 by 2016.

Two-bed townhouses – which became increasingly common in larger estates during the construction boom – have seen a 20% increase from €125,000 to €150,000 over the past year and are likely to hit €160,000 by 2016.

Secondhand four-bed semis are currently selling for around €240,000 (up from €220,000) and are likely to remain static this year.

Secondhand four-bed detached homes are up 10% to €330,000, and are likely to increase to €350,000 in the coming year, according to the report.

For more, read this week’s Galway City Tribune.