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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 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.
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SEE: Finfacts blog post 2007: Irish Property Obsession, British Landlordism and Myths
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