In the past 12 months, DNG Maxwell Heaslip and Leonard’s Residential Sales division had another promising and positive year, listing circa 230 properties across Galway city and county. With 92 per cent selling in the first four weeks of going to the market and over 60 per cent of them achieving figures above their initial guide prices, the residential property market in Galway continued to show a positive and steady growth.
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 of the year had been the 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 had identified some interesting movements in market trends over the last year and certain price brackets of the market. “We found that the most notable statistics are for properties in excess of €600k," Kyle O’Brien commented. "There is no question that those properties required more time and patience in order to agree and complete the sales. This was due to a few reasons, with the main one being the time required to arrange finance. When the interest rates increased, this resulted in potential buyers being a little more measured and cautious when it came to taking out a mortgage. Despite the interest rate hikes, overall prices had generally remained relatively stable, however, certain areas, had 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 remained the most active players in the market, accounting for one in every two purchases of second-hand properties. This highlighted 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. Those increases are a testament to the strong demand in the Galway market. There continued 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 was putting increased pressure on supply levels in the rental market and that, of course, was putting significant pressure on upward rent. Tenants now seek to purchase with rental levels exceeding mortgage payments in certain locations.
DNG Maxwell Heaslip & Lenoard’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 such as Corrandulla, Corofin, Headford and Claregalway were achieving exceptional prices over the last 12 months. Buyers had been noticing there is still value to be had only 20 to 25 minutes from the city. These new buyers, who have widened their search area, are now competing with those originally from these areas, who were extremely focused to get back to their roots.
Additionally, there was a significant demand for new developments in Galway city over the last 12 months. DNG Maxwell Heaslip & Leonard has launched and sold all units in all the development schemes the company has been involved in during the year, with off plan sales being the norm and leading to a 100 per cent selling rate. This demonstrated a strong appetite for newly constructed properties among buyers who value modern amenities, energy efficiency, and contemporary design.
“Although the past year had 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," Mr 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 had shown growth and stability over the last 12 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, contact 091 565261.
