The Abrivia 2017 Salary Survey found that 28% of employers expect to lose employees because of the increasing cost of purchasing a new home. It also found that that 63% of house purchasers will seek a salary increase due to housing market conditions.
The Daft.ie House Price Report for Quarter 1 2017 found that the year on year change in the average list price nationally was 9.4%. In Dublin, house price inflation has increased from 1.2% in early 2016 to 8.7% in early 2017(Ronan Lyons, Assistant Professor in Economics, TCD).
The average asking price for a 3-bed semi-detached house in South County Dublin is €512,000. West Dublin for the same is €274,000 and North County Dublin is €283,000. A one bed apartment In Dublin 1 will set you back €198,000 whereas a one bed apartment in Dublin 10 will set you back €110,000. In regards cities and purchasing a new home, Dublin is the most expensive and Waterford offers the best value in regards city house prices. A 3-bed semi-detached house in Waterford city costs in the region of €131,000.
With increasing costs putting upward pressure on salaries and making retention more difficult, this poses a threat to employers. But there is light on the horizon. The Minister for Housing. Simon Coveney TD, recently unveiled the Rebuilding Ireland programme which aims to supply 25,000 housing units annually.
A significant part of the Rebuilding Ireland programme is to put vacant properties into use, which means that not all the 25,000-annual target will consist of houses being built from scratch on greenfield sites.
The CSO recently released Census 2016 figures which details the level of vacant properties around the country. Blacklion, county Cavan, has a staggering vacancy rate of 46.4%(excluding holiday homes).
The number of vacant house in Dublin city and suburbs, as of the 2016 census, stands at 13,129. The number of vacant flats in Dublin city and suburbs stands at 15,059. The total number of vacant holiday homes in Dublin city and suburbs is 1,311. This all adds up to a total vacancy rate of 6.3% in Dublin city and suburbs.
Cork city and suburbs has a similar vacancy rate to Dublin, at 6.9%. Limerick city and suburbs has a vacancy rate of 7.4%, Galway 9.3% and Waterford 10.9%.
When one looks at the large peripheral commuting towns around Dublin, Balbriggan has a vacancy rate of 6.3%, Skerries 5%, Donabate 3.8%, Malahide 5.8%, Swords 4.6% and Ashbourne 5.7%.
When one ventures west of Dublin’s suburbs, Maynooth has a vacancy rate of 4.4%, Leixlip 3%, Cellbridge 3.4%, Kilcock 7.4%, Edenderry 7.5%, Kinnegad 9.5% and Mullingar 8.9%.
When one travels south of Dublin in the general direction of Cork, Naas has a vacancy rate of 5%, Blessington 5.1%, Newbridge 7.4%, Monastrevin 10.8%, Portlaoise 7.4% and Portarlingtin 13.5%.
Heading south of Dublin towards Wexford, Bray has a vacancy rate of 4.8%, Greystones-Delgany 5.2%, Ashford 6.1%, Wicklow town 7.6% and Arklow 6.8%.
The 2017 Abrivia Salary Survey and Economic commentary highlights the importance of the housing market to both employers and employees alike. The current housing situation is putting upward pressure on salaries and making attraction and retention more difficult in certain parts of the country. However, the Rebuilding Ireland programme plans to greatly alleviate this problem by facilitating “a dramatic increase in the delivery of homes nationwide”.
To read more about the Rebuilding Ireland plan, please click here>>>