Rising Coastal Property Prices

June 22, 2021
Makayla Santino

Since the beginning of the pandemic, property prices on the coasts of Ireland have skyrocketed. According to Daft.ei’s Coastal Report 2021, these homes are now 23 percent more expensive than before the onset of the pandemic. Properties in coastal regions from Carlingford and Rosslare on Ireland’s east coast to Renvyle and Dunfanaghy on the west have drastically inflated over the past year.

The national average of housing price increase is at 8.7 percent, demonstrating the elevated rise in property prices on the coasts that are at 23 percent. To generate these statistics, Daft.ie analyzed 120,000 properties that had been listed for sale across Ireland from January 2019 to April 2021. From looking at these listings, they were able to estimate the price on coastal homes compared to how similar properties had changed over the course of the year. In doing so, they found definitive indication that coastal home prices have risen significantly. 

Daft.ie has reportedly seen this trend in price increase not only in properties within 500 metres of the coastline, but also in regions where ten percent of the properties are holiday homes. 

Daft.ie also focuses on more specific regions and cities that are prominent coastal areas. They look at Lahinch in Clare and Kilmore Quay in Wexford which have witnessed 39 percent and 54 percent increases respectively in the pricing of three-bedroom houses. 

Further than just increases in listing prices, the rise in transaction prices has been even larger. Drawing on a sample of listings linked to a property price register, about one-fifth of coastal homes are going for over 10 percent of the asking price, which is about twice the national ratio. Regions with the largest divergence in asking and transaction prices were Lahinch, Dunfanaghy in Donegal, and Enniscrone in Sligo at 13.8, 26.3, and 13.5 percent respectively. 

When comparing February 2021 to February 2020, coastal property searches were up 45 percent while searches for homes in Dublin were down 59 percent. 

Dr. Tom Gillespie, NUIG environmental economist, has noted that these changing trends may be the result of increased remote working. Since more people have been able to work from home, attitudes may be changing regarding the trade-off between being located close to work versus being close to nature. Other possibilities for the surge in pricing are an increase in coastal activities, increased savings, and two ‘staycation’ summers. 

It is interesting to see the ways in which the pandemic has affected the economy and the behavior of people more broadly. Housing prices are rising across the nation, yet coastal cities are witnessing much more drastic inflations of property pricing. As the pandemic winds down, it will be intriguing to see if these trends continue at such high rates.

 

References:

Beesley, Arthur. “Price of Coastal Homes ‘Soars in Wake of Pandemic.’ The Irish Times, 17 June 2021, https://www.irishtimes.com/life-and-style/homes-and-property/price-of-coastal-homes-soars-in-wake-of-pandemic-1.4595457.

Halpin, Hayley. “Properties by the Coast in Ireland Now Cost 23% More Than Before Covid-19 Pandemic.” thejournal.ie, 17 June 2021, https://www.thejournal.ie/coastal-homes-prices-ireland-report-daft-5468843-Jun2021/.

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