Best Property Services Senior Residential Sales / Valuer and Negotiator Adrian Doran takes a look at the figures and what they mean for buyers, vendors and investors in the greater Newry area.
The latest House Price Index statistics released by the Land and Property Services last week has provided some interesting statistics for the Northern Ireland property market for Q4 2019.
We’ve analysed the figures in more detail reflecting on how the Newry and Mourne sector has performed individually, providing a greater insight for both current and future clients.
The survey reported an overall regional increase of 2.5% over 12 months. Newry and Mourne's increase was 4.3% placing it 3rd of the 11 boroughs surveyed. The current average house price in Newry and Mourne is £147,800 some 5% higher than the average house value in Northern Ireland
When it comes to property, each council area has its own individual market challenges and opportunities. We’ve provided a breakdown of each residential sector to offer some further insight on the local market.
Detached Houses saw an overall increase of 3.7% to £210,700.
This sector is interesting as it includes some high value unique sales which on occasion can slightly distort the overall figure. These houses typically tend to take a little longer to sell due to a restricted buyer pool and as such correct pricing is the key here. We have found increasingly that there is an appetite for clients to downsize from larger family homes https://www.bestpropertyservices.com/property-for-sale/bedrooms-4 ) to a more manageable property in terms of both size and outgoings. There is however, a frustration locally at the lack of available properties to move to as most of the newer stock tends to be marketed to first time buyers. There remains a severe shortage of bungalows in this area which are the preferred option with this cohort.
Semi Detached properties saw an overall increase of 3.1% to £136,200
This sector locally has certainly out-performed the national average, with new build semis typically selling in excess of £170,000. The demand is being driven mostly by first time buyers who place a premium on new builds however the resale Semi market has also seen an increase. Some of the reasons for the buoyancy in this sector are the limited supply of both new build and resale property. Current mortgage rates are more favourable and lower deposit options are very attractive - in particular to first time buyers. One other interesting aspect of this first time buyer demand in our area is the proximity to the border and the number of cross border workers. Many are commuting to the Dublin area both in the construction and white collar sector, which often sees their borrowing potential increasing as they are earning well in excess of average NI income levels.
Terrace properties saw an overall increase of 1.8% to £98,100
In general we see a low level of supply to the market of this type of property and this is due to two main reasons:
1. A lot of this type of stock is owned by investors and with the rental demand high and yields at a reasonable level investors do not see it as the right time to sell these assets.
2.The trade-up gap from these houses to newer 3 bed semis has widened quite considerably over the last few years making it unaffordable to a lot of home owners that ideally would have made this move.
Apartments saw an overall decrease to £109,300
The apartment market in the Newry and Mourne area has always varied widely, given the smaller volume of this type of property in the area. In recent times developers have preferred to build semi-detached houses as this is a more favourable market currently. Apartments do still appeal to both down sizers and are very popular with the rental market although supply is likely to remain inconsistent.
Overall, the market in general remains quite consistent on the back of the continuing strong employment figures and cross border workforce. With the Northern Ireland Assembly back in situ, this should increase stability across NI, although the current Brexit negotiations may continue to hamper growth and we will see the market continuing at a steady, if unspectacular rate, compared to the rise between 2015 to 2019.
At Best Property Services we are always enthusiastic to talk to you about all your property needs. If you’d like to discuss this article in more detail or are considering a move in the property market, please feel free to contact us on the details below to arrange an appointment.
About the Author
ADRIAN DORAN SENIOR RESIDENTIAL SALES / VALUER & NEGOTIATOR
TEL: 028 302 54977
MOB: 078 1074 1796
Adrian has over 20 years' experience in the Newry & Mourne housing market and has been a key member of the Residential team with Best Property Services since 2004.
He specialises in Residential sales and provides market valuation advice on residential properties coming to the market.
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