| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 Asia Economy


How to use our RSS feed

Follow Finfacts on Twitter

Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.


Finfacts is Ireland's leading business information site and you are in its business news section.


Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News


Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News




Content Management by interactivetools.com.

News : Property Last Updated: Aug 27, 2014 - 10:38 PM

Irish House Prices: Dublin prices up 23% in 12 months to July 2014; Rest of Ireland gain 5%
By Finfacts Team
Aug 27, 2014 - 11:46 AM

Email this article
 Printer friendly page

Irish House Prices: In the year to July, residential property prices at a national level, increased by 13.4%.  This compares with an increase of 12.5% in June and an increase of 2.3% recorded in the twelve months to July 2013. Dublin house prices rose 23.2% while Rest of Ireland prices gained 4.9%.

The CSO reported that residential property prices rose by 2.0% in the month of July.  This compares with an increase of 2.9% recorded in June and an increase of 1.2% recorded in July of last year.

In Dublin residential property prices grew by 2.7% in July and were 23.2% higher than a year ago.  Dublin house prices rose by 2.5% in the month and were 23.1% higher compared to a year earlier.  Dublin apartment prices were 26.3% higher when compared with the same month of 2013. See Tables 6, 7 and 8.  However, the CSO said it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin) rose by 1.3% in July compared with a decrease of 0.1% in July of last year.  Prices were 4.9% higher than in July 2013.

Overall Decline: House prices in Dublin are 41.2% lower than at their highest level in early 2007.  Apartments in Dublin are 48.4% lower than they were in February 2007.  Residential property prices in Dublin are 43.0% lower than at their highest level in February 2007.  The price of residential properties in the Rest of Ireland is 45.1% lower than their highest level in September 2007.  Overall, the national index is 42.3% lower than its highest level in 2007.

Irish House Property: Cash purchases accounted for 35% of transactions in Q2 2014

Irish students face rising rents and 40% fewer properties available

Irish home mortgage loans issued in Q2 2014 at annual rate rose to 1974 level 

Angela Keegan MD of MyHome.ie said: “The fact that we have now had three months of growth in property prices outside of Dublin is very heartening and shows that the property market nationally is moving in the right direction. Prices in the rest of the country are now 5% higher than they were a year ago, having risen 1.3% in July. Rising prices and an increase in the number of transactions will boost confidence in the property market”

“While the continuing price recovery in Dublin is also most welcome, the 23.2% year on year increase, driven by the shortage in supply, is not sustainable and needs to be addressed. While stock levels rose recently to 3,677 homes this still isn’t sufficient to cope with the pent up demand that exists. The shortage is putting first time buyers in Dublin especially under huge pressure. We hope the Government fully realises the urgency of the situation and moves to address it with a range of suitable measures in the budget.”

“We have a supply problem and we clearly need more new houses to come on the market in Dublin and other urban areas to keep affordability at appropriate levels,” Keegan concluded.

David McNamara, economist at Davy, commented: "The pick-up in house price inflation has not been driven by mortgage lending; rather, cash buyers continue to account for over 50% of transactions in the market. In Q2, new mortgage lending accounted for just 49% of transactions by volume. The lack of new housing supply, together with rising rents, has enticed cash buyers into the market. Residential property transactions were up 40% yoy in the first half of the year at 15,592, while little new supply has come on-stream – pushing up prices. However, cash buyers are unlikely to be a sustainable source of demand over the longer term, so demand from mortgage holders will become an ever-increasing share of the market as cash buyers begin to leave.

Nonetheless, house building has begun to pick up. In the first five months of the year, completions totalled 3,941 compared to 2,997 in the same period in 2013. While the pick-up is encouraging, house building still remains at exceptionally low levels and is nowhere near the 18,000 units required each year to satiate new demand, according to recent ESRI population studies. Price rises could well persist in the short term until ample supply begins to hit the market."

Peter Stafford, director Property Industry Ireland, an Ibec unit, said: "Today's figures show the real impact of a lack of new supply into the housing market. With no new major housing schemes in urban areas reaching the market, and interest amongst buyers improving, it is not surprising that prices continue to rise so fast, especially in Dublin.

"October's Budget is a great opportunity to continue the reforms made in Construction 2020 and bring new housing schemes through planning and onto construction as soon as possible. This is the only way that price rises can be moderated. Students and young families have been some of the biggest losers during this period of price inflation. The budget is a chance to address their specific housing needs."

Related Articles
Related Articles

© Copyright 2011 by Finfacts.com

Top of Page

Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement