In a sign that the price surge in the property
market is gaining momentum, asking prices in Dublin continue to increase this
quarter while price growth has also extended to the national market. The mix
adjusted average asking price in Dublin increased by 4.5% in Q2 2014, the
largest increase since Q1 2006.
This is the fifth quarter in a row Dublin has
recorded a price increase and puts the mix adjusted average asking price in the
capital at €255,000, an increase of €11,000 on Q1.
The national mix adjusted average asking price
grew by 1.3% for the same period - - the first such increase since the peak of
the market in Q4 2006 – according to the latest house price survey from
The average mix-adjusted asking price nationally
now stands at €190,000.
Dublin prices surged 22% in 12 months to May and
jumped 4.2% in the month,
the CSO reported last Wednesday and it said residential property prices at a
national level, increased by 10.6%. This compares with an increase of 8.5% in
April and a decrease of 1.1% recorded in the twelve months to May 2013.
The author of the Myhome.ie report
Caroline Kelleher from DKM Economic Consultants
said that while the recovery in national prices was encouraging, the stronger
price growth in Dublin means the divergence between the capital and country is
continuing to widen.
“Focusing on new sale instructions to the Dublin
market, we see that the median asking price has increased 7.4% in Q2. This
clearly reflects rising expectations among sellers in the current market.
In addition an analysis of transacted properties
up to Q1 2014, for which matched data is available from Myhome.ie, shows that
transaction prices in the year to Q1 2014 were up 20% in Dublin and 13.6%
nationally which is in line with CSO trends.
“Supply constraints are clearly a key factor in
Dublin and other key markets and these would appear to be driving the current
price increases. Given the time lag in addressing supply issues it is likely
prices will continue to rise in these areas for some time to come,” Kelleher
Angela Keegan managing
director of Myhome.ie said the widening gap between the country and
the capital as well as the volatile supply issue needed to be addressed.
“It’s heartening to see asking prices nationally
rise for the first time in 8 years. While this is an important landmark on the
road to recovery, we are still much closer to the start of that journey then the
finish. The average mix-adjusted asking price in Dublin is now 34% higher than
the national figure. This is on a par with trends seen at the height of the boom
when the difference stood at 35%, albeit prices are at a much lower base.
“While the stock situation in the city did
improve by 20% in Q2 this was due to seasonality more than anything else and
given the projected low number of new builds it is clear affordability in Dublin
is set to deteriorate further in 2014. Addressing supply issues where they exist
will be key if we are to return to a normal functioning property market” Keegan
Irish housing is cheap?
Irish Home Prices 2014: Dublin prices surged 22% in 12 months to May
Dublin's net effective office
rents surge 39.3% in 12 months - - fastest growth in Europe
Dublin housing rents surge;
39,250 BTL accounts in arrears
Irish home mortgages paid in
Q1 2014 at lowest since 1972
One quarter of Irish
households jobless; More than double EU average
Dublin Housing Crisis: 75
item laundry list doesn't make a strategy