The average price in Northern Ireland is now £187,900 – a 5.2% annual price growth and a 2.4% growth from last quarter. The average house price is now £192,600, with apartment values of £141,100. The annual price growth of both houses and apartments has increased by 5.3% and 4.0%, respectively. Now on average, it takes a property 35 days to reach sale agreed, 8 days less than the previous quarter indicating that demand is persistent.
Prices in the new-build market continue to increase with the knock-on effect of rising labour and material costs creating a difference of approximately £40,000. The average new-build property in Northern Ireland now costs £221,700, with quarterly growth of 5.3% and a 17.6% rise in annual price growth.
Northern Ireland saw an additional 7,634 new properties available to purchase in Q2 of 2022. This was a 7% decrease in new inventory and a 9% drop in stock levels compared to Q2 in 2021.
The Causeway Coast & Glens areas witnessed the largest quarterly price increase of 3.5% to an average property price of £195,700. Belfast remains the top-selling council area across the country, with Botanic, Titanic, Ormiston and Lisnasharragh in the top 5 selling locations, accumulating over 800 sales in Q2.
Jordan Buchanan, Chief Economist at PropertyPal, commented on the performance of the housing market:
“The housing market continues to show considerable momentum despite the mounting pressure on household finances and rising mortgage rates. However, a two-speed market has emerged with new build house prices growing at 18% over the previous 12 months compared to a more modest 5% for resale properties. A weaker economic outlook is expected to weigh on housing activity later this year and further price moderation is expected. But buyer demand and enquiry levels remain strong, newly agreed sales are at stable levels and a persistent property shortage will keep upward momentum on prices. Further interest rate increases are expected and buyers planning to move should lock in deals as soon as possible to avoid higher repayments down the line.”
In the rentals market, the average rental property now costs £724 per month, a 1.9% quarterly increase – a £13 rise since Q1. The average cost of renting a house is now £723 per month, while the average cost of renting an apartment is £725. The annual rent growth of both houses and apartments has also increased, to 7.7% and 4.0%, respectively. Rental properties in the Fermanagh & Omagh areas have witnessed the greatest increase in Q2 at 3.1%, with annual price growth of 9.4%.
Jordan further commented on the performance of the rental market:
“The rental market dynamics continue to be driven by a chronic undersupply of affordable rental accommodation. Total available properties during June was down 57% compared to levels before covid-19. Meanwhile, tenant demand has surged to record highs with an average of 64 enquiries for each rental property advertised. This imbalance has contributed to higher rents with an average increase by 1.9% over the last 3 months and by 6.4% over the last year, equivalent to £44 per month or £526 per annum.”
HousingMarketTrends_Q2_2022Last modified: 11/08/2022
