Housing market buoyant in North
House prices in the North are now growing by an annual rate of 13%, a new report revealed today.
With no sign of the market facing any slowdown, the average cost for a property has reached £118,313 (€171,800).
But economists predicted any future surges in the University of Ulster’s house price index could be less dramatic.
Alan Bridle, the Bank of Ireland’s head of research in Northern Ireland, said: “The findings of the latest survey portray a market which, in general, is still bubbling along with the highest rate of annual increase since the third quarter of 2002.
“It may be, however, that the latest annual reading is something of a ‘high water mark’ and we anticipate a return to high single-digit price growth in 2005, perhaps 7%.
“The fortunes of the market remain inextricably linked to the general health of the economy, the cost of borrowing and the affordability constraints on first-time buyers.”
The latest quarterly analysis from October to December 2004 reinforced a decade-long price rally.
Based on a sample of 2028 open market transactions across the whole range of property types, it was produced in partnership with the Bank of Ireland and supported by the Northern Ireland Housing Executive.
Index authors Professor Alastair Adair, Professor Stanley McGreal and Suzanne Allen, of the University of Ulster, said the report demonstrated the mixed messages coming from the current survey.
“On the one hand, annual price growth back into double-digit figures while, more in line with expectations, the quarterly increase at the end of 2004 was 2.9%.”
The value of the Northern Ireland House Price Index has now hit a new high of 448.19.
Housing Executive head of research Joe Frey warned the unexpectedly high rate of increase for 2004 added to his concerns about the difficulties facing first-time buyers in the market place.
He stressed that it is important that the statutory agencies and the private sector continue to work together to address them.
Marked variations were found, with detached houses now the highest priced property type after going up on average by 14.02% to an average of £181,230 (€263,159).
Semi-detached houses also performed well with a rate of increase of 14.80% to £111,020 (€161,243).
Semi-detached bungalows rose by 19.13%, detached bungalows showed an increase of 16.66%, while terraced housing went up 13.60%.
Apartments, however, had only a 2.67% increase to £97,532 (€141,636), which, unlike other sectors, is below the overall average price for the year of £98,097 (€142,457).
Among Belfast locations, the south of the city continues to be the highest priced, with an average of £141,645 (€205,698).
East Belfast came next with a £132,951 (€193,057) average, followed by a buoyant showing in the north to weigh in at £89,320 (€129,701). West Belfast averaged £81,990 (€119,057).
