Leading Galway city estate agent DNG Maxwell Heaslip & Leonard is reporting a hugely positive start to 2023 for its residential sales division. Some 92 per cent of its residential listing from January to the end of June sold in the first four weeks of going to market, with over 60 per cent of properties achieving figures above their initial guide prices. These impressive figures show why the company continues to be a leading light in the west of Ireland property market.
Commenting on their impressive results, residential sales agent Kyle O’Brien said: “Our recently issued DNG National Price Gauge (NPG ) results show that the annual rate of price growth in the last six months have been strongest in the west, showing a five per cent rise in second hand property sales. Traditional areas such as Salthill, Barna, Oranmore, Moycullen, Knocknacarra, Ballybrit, and the Westside area of the city continue to stand out as the most popular areas where a huge number of buyers would like to live. The demand for properties in these locations have been consistently high, leading to the increase in property values. These areas offer proximity to schools, retail parks, beaches, and major roads, making them highly desirable for buyers.”
The DNG Maxwell, Heaslip & Leonard sales team have identified some interesting movements in market trends and certain price brackets of the market. Kyle O'Brien commented: “We have found that the most notable statistics are for properties in excess of €600k. There is no question that these properties require more time and patience in order to agree and complete a sale. This is due to a few reasons, with the main one being the time required to arrange finance. Recent interest rate increases have resulted in potential buyers being a little more measured and cautious when it comes to taking out a mortgage. Despite the interest rate hikes, overall prices have generally remained relatively stable; however, certain areas have experienced price increases due to their desirability and limited supply, and hence the overall percentage rise in values.”
DNG has analysed buyers of resale properties in the first six months of the year and can confirm that first-time buyers remain the most active players in the market, accounting for one in every two purchases of second-hand properties. This highlights both the strength of underlying demand from first-time buyers, who are keen to own their own home, and their willingness to purchase in the re-sale market despite the plethora of supports targeted at first time buyers of newly constructed homes. These increases are a testament to the strong demand in the Galway market. There continues to be an exodus of investors from the market with vendors selling investment properties, and a low percentage of buyers were entering the market as investors. This exodus of investors is putting increasing pressure on supply levels in the rental market and that is of course putting significant upward pressure on rent.
DNG Maxwell Heaslip & Leonard’s residential sales team have not only been busy selling across the city, they have also seen a surge in stand-alone, detached properties with their own sites. Areas like Corrandulla, Corofin, Headford and Claregalway are achieving exceptional prices in recent months. Buyers are noticing there is still value to be had just 20/25 minutes from the city. These new buyers, who have widened their search area, are now competing with those originally from these areas, who are extremely focused on getting back to their roots.
Additionally, there is significant demand for new developments in Galway city. DNG Maxwell Heaslip & Leonard has already launched its second new development scheme of the year, which has seen a 100 per cent selling rate. This demonstrates the strong appetite for newly constructed properties among buyers who value modern amenities, energy efficiency, and contemporary design.
“Although the first six months of this year have been very positive for the property market in Galway city, the demand continues to outweigh supply, creating a competitive environment where numerous buyers are vying for the same homes," Kyle O'Brien added. "This supply-demand imbalance has put upward pressure on prices, especially in the popular areas. It is essential for the Government to work with developers/builders to help address this issue to ensure a balanced and sustainable market.
"The property market in Galway has shown growth and stability over the last six months. The demand for new developments remains high, as demonstrated by the success of our recent projects. However, the market still faces challenges due to limited supply, resulting in competitive buying conditions. Continued efforts are necessary to meet the demand while ensuring a healthy and sustainable property market in Galway city.”
If you are interested in talking with Kyle O’Brien, or any of the team at DNG Maxwell Heaslip & Leonard, phone 091 565261.
