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The Gas Works
apartment complex in South Dublin, which was built by insolvent
developer Liam Carroll's ZOE Group |
Average national house prices in Ireland fell by
18.5% in 2009 compared with 9.1% in 2008 - - 31.5% dip since peak in February
2007 and maybe more
Average national
house prices in Ireland fell by 18.5% in 2009 according to the permanent
tsb / ESRI House Price Index end of year review published today. The
index also reveals that prices [average national] declined 3.6% in
December. This compares to reductions in November (-3.1%), October
(-1.8%) and September 2009 (-1.1%). There has been a 31.5% dip since
peak in February 2007 and maybe more.
The full year
decline of 18.5% compares to a reduction of 9.1% in 2008. The average
price for a house nationally in December 2009 was €213,183, compared
with €261,573 in December 2008 and a peak of €311,078 in February 2007.
National prices have fallen 31.5% since this price peak.
Commenting on the results, Niall O'Grady, General Manager Business
Strategy, permanent tsb said; "2009 was a horrendous year for the
Irish housing market with a combination of shattered confidence,
significant oversupply and a weakening economy combining in a vicious
circle. The figures deteriorated as the year progressed with an 8.5%
reduction in average prices in quarter 4 - more that twice the pace of
decline of any other quarter since the fall commenced. The pessimist
will say there's worse to come. The optimist will argue that
affordability has improved so much that things will stabilise soon. But
the realist will admit we'll have to wait and see."
Dublin V Rest of
Country
Dublin house prices
fell by 4.3% in December while there was a reduction of 2.5% for houses
outside Dublin. In November the relative price changes were -0.4% and
-2.6%. In 2009 House prices were reduced by 20.6% and 15.3% in Dublin
and Outside Dublin respectively. The equivalent rates in 2008 were
reductions of 11.7% and 10.2% respectively.
The average price
for a house in Dublin and outside Dublin in December 2009 was €278,767
and €189,643 respectively. The equivalent prices in December 2008 were
€351,096 and €223,984.
There
is no data on volume change from month to month - - a key drawback
- - and the data is based on PermanentTSB transactions, which may
not be representative of the whole market. For example the plunge in
high priced houses may not be reflected in the index.
