According to the latest residential market review from leading property advisors DNG, the average price of a second-hand home nationally has increased to €313,453 in the first half of the year.
The DNG National Price Gauge (NPG ) recorded an increase in the average price of resale property nationally (excluding Dublin ) of 4.7 per cent in H1 (first half ) 2025. Whilst in the twelve months to June 2025, the NPG saw an increase in residential property prices of 8.7 per cent, the same rate of increase was recorded by the NPG in the full year to December 2024. Specifically, in the west of the country, the average house price for June 2025 is €310,470, reflecting an annual change of 7.7 per cent. In the first six months of 2025, there was also evidence of robust rates of price growth in all regional residential markets.
An analysis of DNG buyers of resale properties in the first six months of this year reveals that first-time buyers continue to be the majority of purchasers of second-hand properties, buying 54 per cent of sales agreed in the period. The research shows an additional 19 per cent of purchases were made by owners trading up in the market, while only 5 per cent were buying to trade down. Concerning financing their purchase, 69 per cent of buyers relied on mortgage finance to complete their purchase, a further 21 per cent used cash/non-mortgage finance, whilst 9 per cent of buyers were selling an existing property in order to move home.
Commenting on the results, Director of Residential Sales at DNG Maxwell Heaslip & Leonard, James Heaslip, said, “The market continues to be characterised by an excess of demand over supply and prices continue to climb as a result.
“That said, however, there has been a welcome increase in the number of homes coming for sale in the second-hand market in recent months, both demand and subsequently prices, have remained robust, particularly from first-time buyers keen to get on the property ladder. As a result, the strongest rate of price appreciation seen in Q2 on the DNG House Price Gauge was at the entry level to the market.
Heaslip added, “We’ve seen a marginal increase in the number of homes being advertised for sale in the capital so far this year compared to the same period last year, with listings up by approx 3 per cent within a 10km radius of Galway city."
The newly introduced rental legislation, which categorises landlords as either small or large, depending on the number of properties they own and changes the reasons for terminating a lease, is likely to have an effect on both the rental market and sales of second-hand properties.
According to Fergal Leonard, director of rentals at DNG Maxwell Heaslip & Leonard, the effects of these changes remain to be seen.
“We’ve seen a steady flow of landlords exiting the market over the past few years, but we’ve also taken on quite a number of new properties, which has evened out our numbers. If a landlord was already toying with the idea of selling up, they may well decide to do so before the new rules come into play”. While a lot of the details of the new changes are still relatively unclear, it would appear that the main issue facing landlords going forward will be that many will no longer be able to terminate a lease in order to sell the property with vacant possession. Small landlords to have to wait six years to get vacant possession, and large landlords will have to sell with a tenant in situ. However, landlords will be able to reset rents to market values at the end of a six-year tenancy.
Leonard further added, “Whilst an increase in listings will be good news for those looking to buy, it is not such positive news for tenants who are likely to see less rental stock available and higher rents”.
DNG as a group are calling for the Minister to allow small landlords to sell one property per annum with vacant possession, and for large landlords to be allowed to sell nine properties per annum. This is the currently allowable limit under the Tyrrelstown amendment to ensure that when existing tenancies end, which are not affected by the new proposed rules, landlords decide to stay in the market rather than selling their rental properties and exiting the sector. Something that DNG say will only serve to further exacerbate the market.
To contact DNG Maxwell Heaslip & Leonard, call 091 565261 or visit dnggalway.ie
