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.
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
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.
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
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."