Daft Coastal Report 2021 - An analysis of price changes in coastal properties since the onset of Covid-19 - Daft.ie
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Daft Coastal Report 2021
An analysis of price changes in coastal properties
since the onset of Covid-19
Introduction by Dr Tom Gillespie,
Environmental Economist at NUIG
Dr Tom Gillespie,
“We find clear evidence that echoes
Environmental Economist at NUIG
those anecdotes that the price of coastal
Oh we do like to be beside the of the 120,000 fell into this categorisation of coastal
property has been on the increase since seaside.
properties. And controlling for a wide range of property
characteristics, these properties can be compared to
the onset of the pandemic.” properties elsewhere in Ireland on a like-for-like basis.
The shift in behavioural patterns brought on by the
Covid-19 pandemic has brought about huge change in The premium for properties in these coastal areas - which
so much of the economy - not least the housing market. range from Carlingford and Rosslare on the east coast,
Lockdowns and resulting remote working have led to a through Kilmore Quay and Schull on the south coast to
heightened appreciation of the environment around us Lahinch, Renvyle and Dunfanaghy on the west coast - has
and the realisation that the trade-off between being close grown dramatically over the last year. As a result of the
to work and being close to nature may be changing - in increased premium a property in these coastal areas is
favour of the latter. As an island nation, one of Ireland’s now 23% more expensive than before the pandemic. This
most attractive natural environments is its vast and compares to a national average increase of just 8.7% in
diverse coastline. Numerous studies have shown that the same period. Alongside the analysis of the change in
exposure to ‘blue space’ can have a positive impact on premium over time, we give specific focus to a number of
physical and mental well-being and this realisation has well known coastal areas. Places like Lahinch in Clare and
been brought into focus since the onset of the pandemic. Kilmore Quay in Wexford have seen the average price of
Many have speculated that the marked increase in a 3-bed house increase by 39% and 54%, respectively, in
coastal activities such as sea swimming and surfing, two the year since the start of Covid-19 compared to the year
‘staycation’ summers, increased savings, and remote preceeding Covid-19.
working possibilities for relocating buyers and returning
locals alike might have led to a surge in demand for This report is based on an analysis of listed prices but, if
coastal properties. anything, the growth has been even greater in transaction
prices. Based on a sample of daft listings connected to
This is what we examine in this special report. We looked the property price register, approximately one fifth of
at close to 120,000 properties listed for sale nationwide coastal properties are going for more than 10% of the
on the daft.ie website from January 2019 to April 2021 and asking price, approximately double the national ratio.
estimate how the price premium on coastal properties
relative to other identical properties has changed over The shift in interest from cities to coastline is also being
that time. We find clear evidence that echoes those seen in website searches and stated preferences of those
anecdotes that the price of coastal properties have active in the housing market. Comparing February 2021
been on the increase since the onset of the pandemic. with the same month a year earlier, coastal area searches
In particular, we see an effect on properties that are, not were up 45% whereas searches for Dublin city were down
just within 500 meters of the coast of Ireland, but in areas 59%. A survey of daft.ie’s users found that 9% of people
where more than 10% of the total stock of housing are who were looking to buy in a city pre-Covid19 changed
holiday homes. This latter feature identifies those parts their mind to add a coastal county onto their selection of
of the coast that are well established in terms of coastal areas of interest post-Covid19.
amenities, including beaches. Approximately 2,700 out
Daft Coastal Report – 2021 | 3Top 5 Seaside Towns with biggest price Areas with biggest price increases
increases
Dunfanaghy +30.3%
€179,964 €234,441
Average price for 3-bed house Pre-Covid Post-Covid
COUNTY AREA PRE-PANDEMIC POST-PANDEMIC TOTAL CHANGE
Wexford Kilmore Quay € 149,555 € 230,644 54.2%
Waterford Dunmore East € 228,257 € 345,090 51.2%
Enniscrone +21.9%
€143,117 €174,446
Pre-Covid Post-Covid
Clare Lahinch € 169,024 € 235,590 39.4% Carlingford +15.8%
€244,856 €283,619
Pre-Covid Post-Covid
Galway Renvyle/Letterfrack € 192,073 € 267,131 39.1% Louisburgh +25.3%
€175,168 €219,488
Pre-Covid Post-Covid
Cork Schull € 297,062 € 396,811 33.6%
Renvyle/Letterfrack +39.1%
€192,073 €267,131
Pre-Covid Post-Covid
23% the value increase for Lahinch +39.4%
€169,024 €235,590
properties by the coast
Pre-Covid Post-Covid
Homes by the coast have increased by almost a quarter since before the
Kilmore Quay +54.2%
Covid-19 pandemic. This compares to a national average increase of just 8.7% Glenbeigh +27.1% Dunmore East +51.2%
€149,555 €230,644
€228,257 €345,090
in the same period. €189,373 €240,731
Pre-Covid Post-Covid
Pre-Covid Post-Covid
Pre-Covid Post-Covid
Schull +33.6%
€297,062 €396,811
Pre-Covid Post-Covid
4 | Daft Coastal Report – 2021 Daft Coastal Report – 2021 | 5Cities losing appeal Changes in searching
There is a notable difference in where people are searching for properties to buy
9%
pre and post Covid-19. The data indicates a shift in interest to move away from
of people have changed their Dublin and to purchase homes closer to the coast.
minds from living in a city to
living in coastal counties* Biggest search decreases
COUNTY AREA WEIGHTED INCREASE
Cities losing appeal - of people who were looking to buy in cities, and not in a
Dublin City Centre -65.6%
coastal county, pre-Covid-19, subsequently added a coastal county into their list
of places that they were looking to buy post-Covid-19. Dublin City -59.2%
Dublin Dublin 8 -59.0%
*According to our Daft Sentiment Survey (N=832)
Wexford Enniscorthy -58.0%
Dublin Dundrum -56.1%
Coastal costs exceed expectations Featured areas increases
COUNTY AREA INCREASE
One fifth of coastal properties are selling for West Cork Skull 75%
Louth Carlingford 61%
more than 10% of the asking value Galway Renvyle/Letterfrack 57%
- twice the national average Clare Lahinch 49%
Sligo Enniscrone 46%
When comparing coastal listings on Daft.ie with transaction prices on the
property price register we have seen a great difference than the national
average. Areas with even higher differences between asking and sales prices
are Lahinch (13.8%), Dunfanaghy (26.3%) and Enniscrone (13.5%).
6 | Daft Coastal Report – 2021 Daft Coastal Report – 2021 | 7Credits Economic Analysis: Tom Gillespie Marketing and Communications: Raychel O’Connell Layout and Design: Julian Czeryba
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