In the year to October 2014, residential property prices at a national level, increased by 16.3%. This compares with an increase of 15.0% in September and an increase of 6.1% recorded in the twelve months to October 2013. Dublin house prices rose 24.1%.
Residential property prices rose by 2.9% in the month of October. This compares with an increase of 1.8% recorded in September and an increase of 1.8% recorded in October of last year.
In Dublin residential property prices grew by 3.0% in October and were 24.2% higher than a year ago. Dublin house prices rose by 3.3% in the month and were 24.1% higher compared to a year earlier. Dublin apartment prices were 26.9% higher when compared with the same month of 2013. However, 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 2.8% in October compared with a increase of 1.5% in October of last year. Prices were 8.3% higher than in October 2013.
Overall Decline: House prices in Dublin are 35.7% lower than at their highest level in early 2007. Apartments in Dublin are 44.5% lower than they were in February 2007. Residential property prices in Dublin are 37.8% lower than at their highest level in February 2007. The price of residential properties in the Rest of Ireland is 42.5% lower than their highest level in September 2007. Overall, the national index is 38.2% lower than its highest level in 2007.
Dr. John McCartney, director of Research at Savills Ireland, cautioned against reading too much into today’s data as the lag time in compiling the index means that it’s referencing deals that happened when trading is naturally slower in August.
Looking forward, he pointed out that a scaling-back of investor demand should lead to a dampening in the rate of house price growth going forward:
“Over the past two years, strong demand from cash-rich investors – who have been willing to pay more due to capital gains tax (CGT) incentives – has fuelled sharp house price growth. However, falling yields have caused investor demand to halve over the last 12 months, and this trend will accelerate in the new year with the withdrawal of CGT incentives for investors. This should contribute to slower and more sustainable price growth in 2015 as the market once again becomes dominated by mortgage-constrained owner-occupiers”.
Dr Peter Stafford, Property industry Ireland director, said: "Today's house-price figures confirm the need for a strategic approach to solving problems of supply, affordability and choice in the Irish market. Problems of supply are driving up rents and prices, and putting huge pressure on the social housing sector.
"The forthcoming NESC report on the future direction of housing in Ireland, Government's own social housing strategy and the two new Planning Bills scheduled for 2015 create an opportunity to build an integrated national property strategy for Ireland, which protects everyone, across all tenure choices, from any future shocks to the housing sector."
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