Business

Housing market shows further acceleration in prices and sales activity says report

THE north's housing market continued its impressive performance into the opening quarter of 2021 with an acceleration in prices and sales activity based on the same period two years ago, according to PropertyPal.

Comparisons for sales volumes and supply levels are made relative to the period in 2019, due to the effect of the housing market closure for four months last year.

The report shows there 8,600 properties went ‘sale agreed’ in the first quarter of this year - 33 per cent more than the same period in 2019.

Belfast remains the most popular place to purchase, recording 1,760 sales, followed by Ards & North Down (1,110) and Armagh, Banbridge and Craigavon (970). Sales of 4 and 5+ bed properties increased by more than 40 per cent.

PropertyPal's data shows annual house price growth has accelerated to 4.7 per cent, with prices increasing by 1.9 per cent during the previous three months at the end of 2020. The average advertised property is now valued at £175,800.

The rental market has also remained buoyant as heightened demand and fewer available properties has pushed rents up by 1.5 per cent over the previous three months and an annual rate of 5.7 per cent.

The average rent in Northern Ireland is £674 per month, of which houses are £663 p/m and apartments £697 p/m.

There were approximately 4,350 new rental properties listed in quarter four of 2020, some 9 per cent fewer than the same period in 2019.

Jordan Buchanan, chief economist at PropertyPal, said: “The labour market and wider economic performance have both shown considerable resilience in recent months and further policy support during the Budget will reinforce market activity in the short term.

“But the longer-term outlook remains highly uncertain and market activity may soften later in the year as the furlough scheme and stamp duty holiday supports are unwound.”