Liam Hargaden of Jordan Auctioneers
2018 was once again a active year for the Kildare property market with a steady volume of transactions and strong demand across all sectors.
From a residential point of view, we saw demand from a large range of buyer types including people trading up to larger family homes, people downsizing as well as people looking to buy investment properties through pension funds, but in particular first time buyers.
Investors are very active in the lower range if the property has not been previously rented and curtailed by the 4% rent pressure zone limit.
We noticed a slowdown in the rate of price increases compared to the previous few years which we feel is mainly due to Central Bank lending restrictions with a loan to income ratio of 3.5 times income. There is also a lot of uncertainty regarding Brexit which is impacting on people’s confidence moving forward until a resolution is found.
There is a large variance in property prices across Kildare with prices in some areas in the northern half of the county (closer to Dublin) almost double those of the equivalent properties in the southern half.
The best performing segment of the residential market in 2018 was once again the first time buyer bracket and we expect this to continue in 2019 with repayments on mortgages for new two, three and four bed homes in our area currently far cheaper than renting the equivalent properties.
Demand for new homes remains strong with the Help to Buy Incentive allowing qualifying first time buyers up to 5% off the price of a new home through an income tax refund.
This incentive is due to expire at the end of 2019. A large portion of the buyers in the Kildare area are coming from and working in Dublin.
They are buying in more affordable areas which are commuter friendly with regular bus or rail services nearby and easy access to the M7 and M4 and we expect this to continue on 2019.
Price increases will likely remain moderate due to the Central Banks strict lending
criteria but demand for housing should remain strong with unemployment rates now as low as 5.3% compared to 16% in January 2012. More and more families who bought at the peak of the market are now emerging from negative equity which is helping to drive demand for some of the larger houses. Affordability compared to equivalent properties in Dublin is also a driving factor in demand for the larger houses in the Kildare area.
Liam Hargaden (firstname.lastname@example.org)
Mark Neylon (email@example.com)