In the month of March residential property prices rose by 0.9% nationwide. Residential property prices were up 16.8% on an annual basis. In Dublin residential property prices rose by 1.1% in March.
Dublin residential property prices were 22.8% higher than in March 2014. Dublin house prices rose by 1.0% in March whilst Dublin apartment prices increased by 2.1%. 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.
Outside of Dublin residential property prices rose by 0.7% in March. Prices were up 10.7% compared with March 2014.
Overall Decline: At national level residential property prices were 38.2% lower than their peak level in 2007. Dublin house prices were 36.9% lower than their peak, Dublin apartment prices were 42.2% lower than their peak and Dublin residential property prices overall were 38.7% lower than their highest level. Outside of Dublin residential property prices were 41.5% lower than their highest level in 2007.
Juliet Tennent of Goodbody commented: "Following two months of negative growth, residential property prices reversed recent trends to rise by 0.9% mom in March. This sees the annual rate accelerate nationally to 16.8% yoy, the fastest rate of this cycle. This reversal of trend is evident in both Dublin, where prices rose by 1.1% mom, and outside the capital, where prices rose by 0.7% mom.
Improvements across the country: The slowdown in Dublin house prices had been evident since last November with the annual rate of increase decelerating from 24.2% yoy to 21.4% yoy in February as uncertainly over potential macro prudential rules was compounded by rising levels of properties for sale and deteriorating affordability. March’s price action sees the annual rate in the capital recover modestly to 22.8% yoy driven by a 1% mom increase in house prices and a 2.1% yoy increase in apartment prices. Outside Dublin, where the prices has slowed by less, the annual rate rose to 10.7%, the fastest rate of the cycle.
A year of two halves for house prices: Weakness in house prices over the past two months, particularly in Dublin, was likely as a result of uncertainty surrounding the macro prudential rules that would have been impacting the market at the end of last year but only impacting the data in the early part of this year. We expect the market to strengthen over the coming months, as those with mortgage approvals granted ahead of the implementation of the rules rush to avail of them, before slowing as the new Central Bank rules are implemented."