NI house prices continue to rise

The growth in house prices in Northern Ireland has accelerated, according to the latest University of Ulster Quarterly House Price Index.

The survey for the quarter April to June 2004 revealed that the overall average price of residential property reached a new high of £112,806, up 4.7% on the first quarter of the year.

The highest rates of growth are now in the bungalow sector with average prices rising by more than 16% over the year to £151,859. Semi-detached bungalows increased by almost the same rate to an average of £96,267.

Semi-detached houses went up 13.3% to £105,203 while detached houses had a more modest 8.3% increase to an average of £166,065.

Apartments, which perform differently from other property types, were relatively unchanged with an annual rise of less than 1% to £97,040 but the authors said a high volume of apartment sales in north and west Belfast during the quarter helped subdue the overall figure. Price rises in other places outside Belfast were higher.

In Belfast the overall average price of £112,077 has increased over the year by 11.4% helped by the strong second quarter performance. The highest priced city location remains south Belfast where prices went up by 12% over the year to an average of £141,727.

In North Down the average of £118,601 was only up 2.7% on the year but all sectors of the market there, with the exception of detached houses, showed annual growth well above the average.

Lisburn remains the highest priced area in Northern Ireland with an average home costing £130,591 representing a very significant 17% increase over the year.

In the north and north west, the picture was quite variable. In Antrim/Ballymena the average house price went up by 4.2% over the year to £102,633 while in Coleraine, Limavady and the North Coast the increase was 9.3% to £124,347. A characteristic here is high-priced coastal towns where increasing numbers of people have second homes – indeed the north coast is the second most expensive location in Northern Ireland outside of Belfast.

In Derry/Strabane growth remained strong with an annual uplift of 18.5% to an average of £98,581, making the area one of the leading performers.

In the west, the Mid-Ulster market annual increase of 24.4% sent average prices soaring to £114,752 while Enniskillen/Fermanagh/South Tyrone did almost as well with an annual increase of 20% to £112,850.

Authors Professor Alastair Adair, Professor Stanley McGreal and Suzanne Allen of the University of Ulster said price levels suggested another step-up in the housing market after a period of more stable conditions.

“The local market reflects the current strength of house prices throughout the UK, helped by a favourable economy, while rising interest rates have not yet impacted on prices. Although the Index indicates a still strongly performing market, the growth rate here is more sustainable that that in other UK regions," they said.

The House Price Index shows that the main entry point into the Northern Ireland market lies in the band from £50,000 to £100,000, which takes up 47% of the sample. Some 49% of properties are above £100,000, compared to 44% in the first quarter.

(MB/GMCG)