House prices soar by nine per cent in Offaly since last year

HOUSE prices in Offaly have jumped by nearly 9% compared to a year ago, according to the results of research carried out by the Tullamore Tribune.

The average sale price of a residential property in the county in the first three months of this year was €262,267.

For the same period last year, January, February and March 2024, the average price was €240,811. The €21,456 average price hike is an 8.91% increase.

According to the Property Price Register, there were 132 transactions in Offaly in the first quarter of 2025 and 188 transactions in the first quarter of 2024.

The most expensive house in the first quarter of 2025 in Offaly was in Ross, Screggan which was sold for €689,700 on February 14. It was a second-hand home.

Another expensive house sold in the first quarter of 2025 was Old Castle House, Dungar, Roscrea. This second-hand home was sold for €670,000 on February 21 last.

READ MORE: Leading business man shares vision for Offaly and the Midlands at sold-out Founders Friday event

During the same period last year, the most expensive property was another second-hand house, Sonas, Brocca Road, Mucklagh. It was sold for €610,000 on January 26.

On March 21 last year, Dunville House in Rhode was sold for €580,000.

Meanwhile, leading estate agent Sherry Fitzgerald said last week that there was a 2.3% increase in the average value of second-hand homes in Ireland during the first quarter of 2025. Over the past 12 months, average property values rose by 7.5%.

Commenting on the report, Marian Finnegan, managing director, Sherry FitzGerald, stated: “The first quarter of 2025 witnessed sustained and robust price growth in the residential market. A critical factor underpinning this trend is the persistent shortage of supply in the second-hand housing sector, with stock levels reaching historic lows in January this year.”

Dublin experienced particularly strong price growth, with the average value of second-hand homes increasing by 2.6% in the first quarter. Annually, price growth in the capital reached 7.6%. While inflation in property prices outside Dublin was somewhat more moderate, it remained significant at 1.9% for the quarter, contributing to an annual increase of 7.3%.

Research conducted by Sherry FitzGerald earlier this year revealed that only 10,380 second-hand properties were listed for sale nationwide in January 2025. This figure represents just 0.5% of Ireland’s total private housing stock, highlighting the acute supply constraints that continue to impact transaction activity across the country.

A review of transaction activity for 2024 further illustrates the market's challenges, with total housing sales contracting by 3.2% compared to the previous year. Stamp duty records indicate that household buyers completed 48,617 housing transactions in 2024, down from 50,239 in 2023. Notably, second-hand market activity declined by 5.8%, with approximately 38,401 second-hand units sold in 2024—a direct consequence of the severe supply shortage.

READ NEXT: ‘No entry’: The inaccessibility of two important amenity sites in Offaly

Conversely, the new homes market demonstrated resilience, recording a 7.7% increase in transactions last year. Household buyers completed 10,216 purchases in this sector.

The Greater Dublin Area (comprising Dublin, Kildare, Meath, and Wicklow) remained a focal point for new housing activity, accounting for 54% of all new home transactions. However, overall housing completions fell to 30,330 in 2024—a disappointing decline amid the ongoing housing crisis. While early indicators suggest some improvement in completions this year, projections remain well below the estimated 62,000 units required to meet demand, which may further impact transaction activity in 2025.

Of particular concern, the trend of landlords exiting the market persisted into the first quarter of 2025, exacerbating challenges in the rental sector.

During this period, only 8% of second-hand home buyers through Sherry FitzGerald were investors, while 30% of vendors were investors selling their properties. Addressing this trend is crucial, and the Government must carefully consider the forthcoming recommendations from the Housing Agency on rental caps to increase the stock of rental properties nationwide. 

Ms Finnegan concluded her remarks by stating: “The residential market in 2025 continues to grapple with persistent challenges. Declines in planning permissions, housing commencements, and completions, as highlighted in recent reports, emphasise the urgent need for Government action to tackle the housing crisis. It is crucial to implement effective policies that drive sustainable supply growth. Moreover, given broader geopolitical challenges, prioritising investment in our physical infrastructure is more important than ever.”