SCSI expects property prices to rise by 5% in 2022
The Society of Chartered Surveyors Ireland (SCSI) has said it expects the median price of a home in Ireland to increase by almost €14,000 this year.
A poll of its 580 members predicts a 5% rise in property prices, with most of that frontloaded to the first three months of the year.
It reveals that prices are expected to increase by 3% in quarter one, as new buyers come onto the market before leveling off.
A 7% increase in property prices is expected in Connacht and Ulster, though it comes from a lower base.
Almost 90% of SCSI estate agents predict price increases with just 2% believing prices will fall.
President of the SCSI, TJ Cronin, said he believes price increases won’t match 2021, but will still be significant as demand continues to outstrip supply.
“When you combine that lack of supply with the two other key issues identified by our members as affecting property prices – namely pent-up demand due to Covid and buyers having an enhanced level of savings due to the pandemic – it’s clear prices are only going to go one way,” he said.
Mr Cronin said he estimates that 40,000 new units a year will be needed to meet demand, with forecasts not seeing the number of new builds surpass even 30,000 until 2023.
The median cost of a home nationally is €250,000, according to CSO figures.
A 5% rise would see the median cost of a home increase by €13,750.
In Dublin the median price of a home is €400,000.
A 5% increase in costs in the capital would translate to an extra €20,000 for home buyers.
Almost four in five SCSI agents are also predicting rents will continue to increase in 2022.
Three quarters of its members expect average rents to rise by between 0-5% this year, with a further 24% believing rents will rise by 5-10%.