House prices show steady rise in confident market sector

The latest quarterly house price index produced by the University of Ulster reports that house prices in Northern Ireland remain buoyant and confidence in the sector is high.

The average house price has increased by just over 8.2% and the average sale price has risen to £95,000.

The quarterly change when compared to the first quarter of 2002 is almost 2.4% and reflects a strong performance in the prevailing market conditions.

Surprisingly terraced properties have led the price rise, with the average terraced property racking up a 13.4% rise to reach £67,900. The apartment sector has shown a recovery following a fairly volatile period of 2001, to chalk up an almost 10% rise to average out at £92,169. Semi-detached properties have risen 8.2% for houses and 7,7% for bungalows.

However, detached properties, those perceived as having the highest desirability and price, have had the slowest rate of growth. Detached house have risen by just under 6% to 142,045 and bungalows slightly less at 5.3% to £117,000.

The report, for the first time, provided a detailed look at various regions within Northern Ireland. The price of the average house in Belfast at £96,757 was just above the Northern Ireland average, though south Belfast was the most expensive region with the average house fetching £115, 811. In that area the value of the average terraced property was put at £113,000 and detached houses averaging in excess of £300,000.

The underlying trend for Northern Ireland house prices remains encouraging and analysts from the Bank of Ireland who sponsor the report indicated that the market fuelled by the low mortgage rate was likely to see further rises.

Although the Northern Ireland housing sector is unlikely to experience the 20% growth rate seen in parts of the UK, which many analysts view as unsustainable.

(SP)