Offaly construction activity one of the lowest in the country
Offaly has one of the lowest construction activity rates in the entire country, new figures have revealed.
The GeoView Residential Buildings Report shows that just 48 buildings were classified as being under construction in Offaly in June 2018, representing just 0.5% of all construction work currently taking place across the countty.
Just Leitrim (0.2%) and Longford (0.3%) have a lower rate than Offaly while unsurprisingly urban areas like Dublin and Cork recorded the highest level of construction work. Dublin accounts for 34.9% of all constructions work currently being undertaken in Ireland while Cork is the second most active at 10.7% with the commuter belt county of Meath third at 10.5%.
The GeoView figures also revealed the changes in residential stock in Offaly over the last year. According to the report, 171 residential addresses were added to the GeoDirectory database between June 2017 and June 2018.
Nationally, the majority of addresses were added in Dublin, accounting for 39.8% of the overall national total, highlighting an east/west divide in terms of new addresses. On the other end of the scale, Longford and Leitrim were the only two counties to record fewer than 100 new residential addresses, registering only 66 and 87 new addresses respectively.
Despite languishing in terms of new builds and ongoing works, Offaly’s residential vacancy rate is actually lower than the national average of 4.8%. Offaly rate of vacancy stands at 4.6%, well below the likes of Leitrim where 15.9% of residential properties are lying empty.
By combining data from the GeoDirectory database and the CSO, the GeoView Residential Buildings Report estimates the average rate of housing turnover. Offaly’s turnover rate was 2.07 per cent, which was lower than the national average housing turnover rate of 2.6 per cent in the twelve months to April 2018.
Dublin, and its surrounding counties, recorded the highest stock turnover, with above average rates in Kildare (3.41%), Dublin (3.37%), Meath (3.22%), Westmeath (2.87%) and Wicklow (2.86%). Rural counties generally recorded the lowest turnover rates, as seen in Donegal (1.40%), Monaghan (1.44%) and Mayo (1.80%).
In total, 623 residential properties were purchased in Offaly the twelve months to April 2018, 9.6% of which were new properties.
18,062 residential property transactions took place in Dublin, the highest in the country, while only 344 transactions were recorded in Monaghan. Meath recorded the highest proportion of new dwelling transactions at 37.8%, followed by Kildare (30.6%) and Wicklow (25.1%).
The national average residential property price in the twelve months to April 2018 was €273,206. When Dublin is excluded, the national average falls to €198,906. Offaly’s average house price was €147,512, although that is well up on its lowest average during the economic crash.
Only three counties recorded property prices above the national average, namely Dublin (€413,891), Wicklow (€354,113) and Kildare (€281,675). This highlights the demand for housing in the Greater Dublin Region, with the average property price in these three counties higher relative to the rest of the country. The county with the lowest average house price was Longford at €101,587, almost 50% below the national average price excluding Dublin.
In Offaly, Tullamore was the town with the highest average property price at €167,939.
Commenting on the findings of the GeoView Residential Buildings Report, Dara Keogh, CEO, GeoDirectory said, “The twelve months to June 2018 saw a significant increase in terms of residential construction activity. The report shows that the vast majority of this activity is taking place in Dublin and surrounding counties. However, despite this increase, house prices in urban and commuter counties continue to rise, showing us that demand is still outweighing supply by a great deal.”
Annette Hughes, Director of EY-DKM Economic Advisory Services said, “Almost one-in-five residential property transactions in the twelve months up to April 2018 involved new dwellings. While this suggests that construction activity is moving in the right direction and new dwellings are coming on stream, increasing property prices continue to signal a significant supply-demand imbalance, implying that much more work is needed to address demand levels.”
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