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Last Updated: Monday, 5 June 2006, 11:11 GMT 12:11 UK
House prices rise by 600 a week
House prices
Northern Ireland's house prices rose by 600 a week
The average price of a home in Northern Ireland has risen by 25% - or 600 a week - in the past year.

The latest quarterly house price index, compiled by the University of Ulster, showed the average price of a home has hit 153,000, 31,000 more than 2005.

The report concluded the rise of 25% is unlikely to be sustained.

However, it also points out that the average house price in the province is still 30,000 lower than the rest of the UK and the Republic of Ireland.

It also highlights the fact that the number of houses costing below 100,000 is shrinking fast.

Lisburn saw an unprecedented rate of growth of 44% to an average house price of just over 188,000 while overall, the highest priced city location is south Belfast, with an average of 188,069.

In Belfast, the overall average price of 145,051 is up by 23.6% over a year.

East Belfast with an overall average price of 165,432 is the next highest; the average price in west Belfast is 113,052, while the north Belfast average is 107,673.

The authors of the survey Professor Alastair Adair, Professor Stanley McGreal and Louise Brown said it was unlikely that growth rates of 25% a year could be sustained.

Mrs Brown said undersupply was a factor in the high growth in prices.

"It's hard to see how this rate of increase can go on," she said.

Average regional prices
Belfast: 145,051
Coleraine/Limavady/North Coast: 165,591
East Antrim: 120,163
North Down: 166,424
Lisburn: 188,772
Antrim/Ballymena: 155,319
Derry/Strabane: 140,747
Mid-Ulster: 163,446
Craigavon/Armagh: 144,157
Mid & South Down: 167,886
Enniskillen/Fermanagh/South Tyrone: 169,402

"Having said that, the 25% growth in this survey is not a one-off - it's very comparable with the rates of increase during the second half of 2005.

"These are boom conditions that appear to be the result of strong investment activity, relatively cheap borrowing costs and an undersupply of properties."

In North Down, the overall average price of 166,424 represents a significant increase of 23.5% compared to the same quarter in 2005.

For the East Antrim market the overall average price of 120,163 reflected a more moderate growth of 14.4%.

In Antrim/Ballymena the overall average house price of 155,319 was up 23.1% over a year.

In Coleraine, Limavady and the North Coast the overall average price was 165,591 - an annual rise of almost 22% over the year but compared with the last quarter of 2005 there was a slight drop of 4.9%.

In Derry/Strabane strong price growth noted in 2005 continued, with the average of 140,747 representing an annual increase of more than 30%.

For the Mid-Ulster market the average price was 163,446, up 25.7% over a year, while in Enniskillen/Fermanagh/ South Tyrone the strong housing market continued, up almost 29% over 12 months to an average price of 169,402.

In Craigavon/Armagh the annual increase shot ahead to more than 39% taking the overall average price to 144,157.

The Mid and South Down market performed strongly increasing the average home price over the year to 167,886, up more than 30%.

Properties

Detached homes re-emerged as the market leader with the average of 237,749 representing a rise of almost 30% followed by terraced and townhouses, rising almost 29% to an average of 120,510.

The average price of a semi-detached house rose 23% to 139,726 while semi-detached bungalows rose more slowly, by 19.7%, to an average of 131,820.

Detached bungalows lagged behind the rest of the market with a growth rate of only 11.9% to an average of 184,045.

The apartment sector continues to show a variable performance with the increase of 19.2% to an average price of 124,814 significantly below the growth rate observed in the previous survey.

The latest University of Ulster Quarterly House Price Index, produced in partnership with Bank of Ireland and the Northern Ireland Housing Executive, covered almost 2,200 transactions reported by 108 firms of estate agents in the first quarter of this year.

Since the survey's base quarter in 1984, the rate of house price growth in Northern Ireland has been well in excess of the general rate of inflation.

The House Price Index is at a new peak of 577.57.


SEE ALSO:
Record rise in price of NI houses
03 Mar 06 |  Northern Ireland
House buyers 'must save longer'
08 Dec 04 |  Northern Ireland
Rapid rise in NI house prices
06 Sep 04 |  Northern Ireland
Rise in NI house repossessions
30 Sep 04 |  Northern Ireland


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