The price of the average three-bed semi in both Cork City and county is expected to rise by 4pc in the next 12 months, according to a survey by Real Estate Alliance.

Three-bed semi-detached homes across the county rose by 2pc in 2023 to €222,500 from the December 2022 average of €217,500, the Q4 REA Average House Price Index shows.

Prices in the city now cost an average of €370,000, up 4pc on the December 2022 average of €355,000.

The average time taken to sell in the county in the final quarter of 2023 sat at five weeks.

The survey shows that first-time buyers accounted for 15pc of purchases in both city and county, with 20pc of sales being attributed to landlords selling.

“Demand for property for both new and second-hand homes in the West Cork area continues to be good, with continuing overseas interest in the latter part of the year,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Bantry.

“Overall demand continues to be good, with a mixture of both cash purchasers and mortgage approved clients.

“Inflationary pressures now seem to be easing somewhat and the interest rate cycle seems to be at an end, however the cost of building continues to rise which is affecting the price of new homes and having an impact on older second-hand properties.

“Whilst the level of bidding has slowed somewhat, there remains steady demand in relation to all property types which should continue into 2024 throughout the county.”

The REA Average House Price Index concentrates on the actual sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.

Three-bed semi prices nationally will rise by 3pc in 2024, estate agents across the country are predicting.

A record shortage of supply has driven a 1.5pc rise in the last three months in the capital, but only in houses under a certain price, the index found.

House prices in Dublin and the other cities outpaced Ireland’s large towns and commuter counties as mortgage approved buyers chase properties within their price ceiling.

The actual selling price of a three-bed, semi-detached house across the country rose by 1pc in the final quarter of 2023 to €304,259 – representing an annual increase of 4.3pc.

Time taken to reach sale agreed nationally is steady at five weeks as low supply continues to drive sales in an increasing interest rate environment.

Prices in Dublin city rose by 1.5pc in the last three months, meaning that the average three-bed semi in the capital is now selling at €511,667 – an increase of 3pc in the last year.

Mortgage-approved first-time buyers are still the main market drivers, with 59pc of sales nationally – a figure that rises dramatically to over 80pc in commuter counties as they hunt suitably priced properties.

Cities outside Dublin experienced a 1.73pc rise in the past three months to an average selling price of €323,000 – with the annual rate of increase of 4.5pc.

Homes in the commuter belt showed the most stability in 2023, rising by just 2.2pc to €319,722, with counties within travelling distance of the capital recording growth of just 0.2pc in the past three months.

The biggest annual rise came in large towns nationwide, which rose by 6.6pc annually and 1.2pc in the quarter to €223,638.