House and apartment sales up 25% on last year – Davy

Residential property transactions are up 25 per cent and could reach €9 billion by the end of 2018, according to estimates compiled by Davy.

Based on the latest figures from the Residential Property Price Register, the stockbroker found 28,022 transactions worth a combined €8.3 billion have been completed so far this year, with the data showing the value of first-half sales is up 19 per cent on the same period a year ago.

However, Davy noted that records have not yet been fully updated and forecast that total first-half transactions could be up as much 25 per cent in value terms. The broker has calculated that the volume of transactions was up by 8 per cent, while the average transaction price rose by 15 per cent to €302,000.

Davy forecast the mortgage market could reach €9 billion by the end of 2018.

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Chief economist Conall MacCoille said transaction volumes accelerated during the summer months after a slow start to the year due to poor weather. He estimated that July transaction volumes alone were up 20 per cent on the same month last year.

“Overall, we still expect that transaction volumes will grow by close to 10 per cent in 2018 towards 60,000, or by 20 per cent towards €18 billion,” he said in a note to investors.

Liquidity

Mr MacCoille added he expected market liquidity to improve during the year helped by stronger homebuilding activity and as existing households with mortgage debt have grown their equity in their homes, making them more likely to move.

"Predictions that new tighter Central Bank mortgage lending rules would hold back transactions have not come to fruition. New mortgage approvals may have grown by only 10 per cent in 2018, but this probably reflects undrawn approvals from 2017 being drawn down this year," he said.