First-time buyers represent a very prominent slice of the market in Waterford, according to auctioneer Des O'Shay.

Prices for new homes range between €200,000 and €220,000 for a 93 sq m (1,000 sq ft) three-bed semi. Depending on location, first-time buyers are paying between €185,000 and €230,000 for second-hand homes.

Those getting on the property ladder for the first time in Waterford tend to focus on the Dunmore Road for second-hand homes, where the more well established estates are located. Coming areas for new homes are Kilberry out the Cork Road and Kilcohan on the city's east side. North of the River Suir, Ferrybank, which was previously underdeveloped, is becoming a popular spot for first-time buyers.

At the moment, all eyes are on the Gracedieu area where Waterford City Council is planning to develop a new town of up to 12,000 in the north-west suburbs of the city, according to Des Purcell of Sherry FitzGerald.

With the new Carrickpherish neighbourhood and further development in the Ferrybank area, first-time buyers will have great choice in 2005, he said.

The normal profile of first-time buyers in the Waterford area are couples in their mid 20s, who are borrowing the maximum, according to Mr O'Shay.

West of the city in Dungarvan, the first-time buyers market is very healthy with first-time buyers paying between €150,000 and €180,000 for new homes.

At that price a lot of people in their late 20s are "doing it on their own", according to Paul Moore, from Spratt, Edmond and Sons: Property Partners. Units in two new developments, Cluain Garbhan, where prices start at €153,000 for a three-bed terrace house, and Towncourt, with prices from €169,000 for a three-bed terrace, are proving very popular.