Northern Ireland house prices down 4%

Wednesday, 6 August 2008 12:00 AM

Property prices in Northern Ireland have continued to stagnate, following two years of unprecedented growth, according to new research released today.

Research from the University of Ulster finds average property prices have fallen by four per cent during the second quarter of the year, when compared to the same period of 2007.

However, the price of semi-detached properties fell by 18.6 per cent, with the market as a whole buoyed by apartments, which are running counter to the general market trend.

At the peak of the market property prices in Northern Ireland were increasing by 51 per cent annually.

There has also been a dramatic slump in property transactions.

Questioning some 120 estate agents with regard to the number of properties sold, research illustrates total sales are down 50 per cent year-on-year, to a total of 1,044.

The overall average price of a house in Northern Ireland in the second quarter was £226,934.

"The survey shows price changes vary widely across different parts of Northern Ireland and across the types of properties, so people should be cautious about making over-simplistic judgments.

"For instance, there are different factors affecting both the resale and the new-build markets," explained Alan Bridle, head of research at Bank of Ireland, Northern Ireland.

"There is no precedent in this region for what is happening in terms of a genuine housing cycle, so we are on a journey through the unknown - which itself is feeding the uncertainty.

"However, with a very quiet resale market, I believe there is a high probability of the average price dropping closer to the £200,000 level before the end of year, with a period of adjustment stretching into 2009.

"Anyone looking for the green shoots of recovery should keep an eye on transaction levels which are likely turn before prices do - but it might be a while."

Northern Irish house prices by region

• Belfast - £247,648, an increase of 3.3 per cent from last year.
  
• North Down - £251.526, down by 2.3 per cent from last year.
  
• Lisburn - £230,2430, down by 17.3 per cent from last year.
  
• East Antrim - £190,133, down by 7.8 per cent from last year.
  
• Antrim/Ballymena - £209,820, down by 8.1 per cent from last year.
  
• Coleraine/Limavady/North Coast - 203,728, down by 26.5 per cent from last year.
  
• Derry/Strabane - £221,227, an increase of 16.7 per cent from last year.
  
• Mid-Ulster - £201,746, down by 16.8 per cent from last year.
  
• Ennisillen/Fermanagh/South Tyrone - £193,406, down by 20.8 per cent from last year.
  
• Craigavon/Armagh - £185,016, down by 20.1 per cent from last year.

The Northern Ireland Housing Executive's head of research, Joe Frey, commented: "There is no doubt that Northern Ireland's housing market is facing a challenging time, but at the same time the current situation provides government with an opportunity to accelerate the building of social and affordable homes, thereby helping both developers - by providing them with guaranteed cash flow - and the many households waiting to access a social dwelling or purchase their first home."

Chris O'Toole

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