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HOUSE BUYERS ARE now once again willing to accept work-commutes of more than an hour according to a new survey.
The survey, commissioned by the Real Estate Alliance (REA), has found that a lack of affordable properties is once more driving would-be house buyers further outside Dublin in their search for a place to call their own.
The phenomenon is eerily reminiscent of the wave of buyers who migrated many hours from Dublin at the height of the Celtic Tiger.
A long commute
Around 2006 it was not uncommon for people to leave their homes at 5am in order to make a commute of two hours or more to the capital.
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The new house price survey shows that price rises in outer commuter ring areas like Laois and Offaly are being driven by Dublin-workers who cannot afford to buy in the capital under the Central Bank’s current mortgage rules, which came into effect in January 2015.
Average prices for three-beds have risen slightly in the rural cities and Dublin’s main commuter counties by 1.31% to €209,559.
However, in the towns in the rest of the country prices have risen by almost 10% in the past year, and almost 3% since December, with the average price of a three-bed in those areas now €125,321.
The survey also reveals that the number of cash buyers has risen for the first time in two years. 36% of buyers are now working on a cash-only basis, particularly in affluent areas in Dublin like Dublin 6 and Dun Laoghaire.
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Younger buyers driven out?
The majority of younger buyers are now being forced outside Dublin however it seems.
“We are seeing a marked absence of the 25-40 year olds at viewings in the capital over the past few months as, under the current Central Bank restrictions, they are finding it impossible to raise the deposits needed to purchase houses over the €220,000 limit,” Michael O’Connor, chairman of the REA.
Conversely, we are seeing growth in commuter interest in counties previously considered at the edge of the daily travelling limits simply because the price is right, such as Laois, where the average price for a three-bed semi is now up 4.17% to €125,000, and Offaly, where the average price is now €140,000, up 3.7%.
O’Connor says that, while supply is extremely limited, properties are now being bought in these outer-ring commuter areas by buyers who are willing to submit to an extended commute of over an hour each morning.
“Louth is the perfect example of this trend in commuter migration,” he says.
Drogheda prices remained static at €197,500 in the first quarter of 2016 while commuter interest caused prices to rise by €10,000 to €135,000 in Dundalk, which is 35km further away from Dublin but over €60,000 cheaper on average.
The property bubble being seen in Dublin is set to spread much further afield it seems.
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I don’t recall a point when we stopped commuting. The buses from Meath to Dublin have been consistently full for the last ten years.
Was going to say the same thing Amy. If anything, people have been willing to commute further over the past number of years in order to get any kind of job.
Absolutely, trains too. By the time the 8am Drogheda gets to Malahide it’s packed.
Sure it can take up to an hour to get to work from some parts of dublin
I live 3 miles from Dublin City Centre and it can take an hour for the bus to get in – especially on wet, Tuesday winter mornings
The Central Bank rules might be making it harder to save for a deposit but they are absolutely not forcing property process up, lack of supply is doing that. The sooner people accept that the rules are not anti-purchaser, the sooner we can deal with the actual problem.
The capital foot of the vulture..
It could easily take an hour and more for people in Dublin traveling to work in Dublin.
Anything more than 90 minutes ans you are pushing the commute.
It’s not just Dublin. I commute an hour to work because I can’t afford rent in Cork city or suburbs.
The absolute last thing needed is a repeal of the recently introduced mortage lending rules. Yes, its a lot to save for a deposit but thats how it should be. Cheap, easy money does nothing but drive up prices and caused the mess we’re in.
Deposit rules protect the banks, not the purchaser. Ability to pay ie based on a multiple of salary is a better way of matching purchasers with properties they can afford. Once you’ve paid the deposit it’s easy for the bank to reposess and sell at a loss, and therefore easy for them to take chances on who they lend to!
Deposit rules restrict the amount the borrower can borrow, it offers them a cushion – which in turn is protection for the banks.
“Ability to pay ie based on a multiple of salary is a better way of matching purchasers with properties they can afford.”
Eh, isn’t this what was done in the bubble – what you are able to pay now has zero reflection on what you can pay in 5 years time.
The CB rules are dousing the flame, thereby reducing the amount that has to be borrowed, thereby reducing the risk of NE in the future.
I’m glad Michael O Connor of the REA is noticing a marked decline the number of people at viewings in Dublin.That means the policy is working. Less short term demand will drive prices down. Keep saving and have patience.F#$k the blood sucking real estate vampires
Willing? Or forced?
Willing – as nobody is forcing you to buy a certain house :)
Forced…in this country you if you want to buy a home you are forced to buy it in another county that is far from where you work…yet don’t work and you will get yourself a nice council house in city centre
Blah Blah I get what you’re saying, but give me any capital in the world where everyone is able to afford to buy a house and not “forced” elsewhere. Dublin is capital of Ireland simple as.
Why not stick all the bums and those on the council list out in laois then. Free up those places for people that actually work there..
Let me solve this in a couple of sentences. Build much higher density (that means tall) residential and office buildings in the city centre, especially around the Docklands. Require larger apartment sizes so that young families can start to think of living for good in the city centre like they do on the continent. Secondly, build the DART underground from Docklands to Heuston, and the Metro North to the airport. Not only would this massively help the traffic situation, it would enable developers to get planning permission for high density developments all long the route of the line, as planning is more likely close to transportation facilities.
There, solved it. Now if only we had some brains in Dublin City Council and Department of Transport to actually do this.
Then again if a little investment went into office/business parks outside of Dublin it might help. Rather than just trying to force all the work to be in the one location and cause people to do these long commutes. But then that requires that thing that the lads (regardless of who is the elected flavour of the month) in power never seem to have : forward thinking.
@Derek, not that simple.. You can’t force a business to set up in the sticks.. I am from the country and am stuck as I want to buy but Dublin is so expensive but have no real affiliation with country anymore and don’t want a 1.5 hour commute either. sucks but way life is :/
Not force, obviously, but if some investment was put in for infrastructure and communications network and the likes they could easily offer the tax breaks they do already. The knock on then for other employment because of this would benefit everyone. Not only that but they might accidentally fix the traffic problem that baffles them so much in Dublin.
Why can’t office people work from home especially with connectivity these days eg Microsoft 365. Ridiculous we march everyone into and home from one central area at the same times every day. Even online doctor visits are interesting.
Nama take houses but instead of leaving tenants in it that pay rent. They want it empty. But if nama take your business they hire the bankrupt owner as caretaker and pay a wage. So the fecker that got greedy and went bankrupt gets let off by taxpayer then gets paid by taxpayer…
Willing to commute or having no choice but to commute ? Those on the housing list are lucky though because they get to choose ..
Willing to commute? I wasnt aware i had a choice.
I hope people are having proper surveying work carried out before the buy anything advailable on the Irish market. The quality of work carried out by some builders/ developers is a scandal. We introduced regulations on energy effency on homes which is as toothless as regulations on landlords not passing on the property tax to tenants. How hard is it to hang a door straight or install drains and services deep enough to stop freezing during cold winter months. We are talking huge about of money and if you are sold a Lemmon your only hope is to off load to the next sucker. Be afraid of houses that have changed hands often, be terrified if the paint is still wet on the walls.
“Willing”?????????ahah, because politicians only care about their pockets. Of course people will buy where quality/price are afordable! Who is going to spend 300k or more in an apartment inside or near Dublin? Just someone who’s on 70k or over a year. Other way, much better to buy a house in Cavan!
Pointless article… Willing to commute…. People are left with no choice and are moving further and further from their place of work to find somewhere suitable
NAMA, NAMA, NAMA
,NAMA,
Hey Hey Hey Goodbye !!!
^if only :(
Willing? You mean forced!
Willing or have to ? Big difference !
Boom is Back Rich getting Richer The poor being crippled.. Oh wait it never changed.
Stephan the poor being crippled, – who are the poor in modern day Ireland,
(1) are you referring to the a self entitled and low educated types with no work ethic
(2) the new underclass type, who are happy to siphon social benefits while maintaining a subsidised standard of living
( 3) So called native ethnic minorities who are biologically conditioned to milk the system for all it worth
Or perhaps the real poor
The people who have worked and contributed all there life, only to find if they dont have an advocacy or self interest group to lobby on there behalf are left marginalised and alone forgotten by society
Communities of poor people cut off from the social fabric of Ireland due to lack of investment in Jobs education and Infrastructure , no access to opportunities that others less worthy take for granted. Yes the rich will always get richer that will never change, what creates poverty in Modern Ireland is fairness of access, when one cannot get access to the table in the first place.
The deposit rules need to be amended to 10% and for first time buyers maybe 5%. The multiple of income should be left untouched as that is prudent. They could possibly move it up to 4 x salary. The deposits will still be high but at least it would give some hope. 70k for a 350k house at present is crazy even if people are not paying rent. 35k could be manageable. Building more houses won’t make a difference to people’s ability to buy it will just favour the wealthy and enable more landlords. It needs to be done in conjunction with the central bank.
No offence Cian – but 350k for a FTB?????
That’s insane.
Not too many houses in Dublin for 350k and two people earning 80k between them should be able to afford that. They are probably paying that in rent. Lots of people are not classed as first time buyers as partner might have bought an apartment before being married. Both are considered second buyers in that case. Even if apartment is worth the same as mortgage they still have to save 20% for new deposit.
Taking out a mortgage is an entirely different matter then paying a rent.
Why would a couple on 80k have difficulty saving for a deposit – if the income is good enough to secure the mortgage – why isn’t it good enough to save?
Its wverywhere. In dingle you cant rent a house. Star wars has booked a lot and the rest are holiday homes. Business find it hard for summer workers as there are no accomidation. The house market nevet realky suffered here. If u own a plot of land u cant put a mobike home on it unkess u have applied for planning. So why u save for a deposit your homeless. Makes no sence
Lorna you need to move to a different galaxy
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