JAMES LEE from REA John Lee discusses all things property with LSL’s Jane Mayne as he looks back on the year, and offers his forecast for 2023.
How did the 2022 property market compare to that of 2021 overall?
The market was somewhat slower on the residential front with fewer properties sold. This was most likely due to a shortage in supply for residential properties. The land market was very strong during the year.
What kind of properties were most in demand in terms of residential and farmland?
Good quality detached family homes were in good demand, as was farmland of all types.
Any particular areas that sold best for you?
Residential and Land.
Did you find there was a lack of supply?
This was the biggest issue with a shortage in residential property the main difficulty during the year.
Did rural property mostly fetch good prices for sellers, or did buyers score with good buys?
There was some value during the year in rural one-off houses as the increase in construction costs put off some buyers. Good prices being achieved for the most part.
Any particular types of farms most sought after – dairy, agriculture, livestock?
Dairy farmers were very anxious for land, but most of what we sold was purchased by businessmen or hobby farmers adjoining existing properties.
What’s your outlook for 2023 – any expectations for the first quarter?
I expect sales to remain steady – mainly due to a shortage of property.
Is the Irish market headed for a price correction, or a slowdown?
The correction is happening currently, as buyers are more conscious of interest rate increases and general uncertainty in the wider economy.
Do you expect the average price per acre of farmland or residential property to rise much in 2023.
Yes, I think good quality land will increase slightly as progressive farmers seek to expand further.
Are most buyers depending on mortgage funding, while many of those in the discretionary segment are cash buyers?
Most purchasers are mortgage approved.
Was there a slowdown in buyer demand over the last year?
Buyers are more cautious, which has slowed things.
Any particular standout groups making investment buys?
Business buyers are back buying compact holdings. First time buyers are very active in the residential market.
What is the average per acre price for farmland, and residential, as the year comes to a close?
Top quality agri land is c. €15,000 per acre with good land on average €10,000 – €12,000 per acre.
Your forecast for 2023?
I expect the property market to remain steady and go through a period of settling down. Prices may easy slightly as a result, but this would be more relevant to the residential market than the land market. I expect land prices to remain strong in the year ahead.
To keep up to date with REA John Lee, see www.reajohnlee.ie
