Property
Irish house prices fell by 15.6% in year to November; House prices in Dublin are 52% lower than peak in early 2007
By Finfacts Team
Dec 20, 2011 - 1:50 PM

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In the year to November, Irish house prices at a national level, fell by 15.6%. This compares with an annual rate of decline of 15.1% in October and a decline of 11.5% recorded in the twelve months to November 2010. House prices in Dublin are 52% lower than at their highest level in early 2007. Apartments in Dublin are 58% lower than they were in February 2007.

The Central Statistics Office said that residential property prices fell by 1.5% in the month of November. This compares with a decline of 2.2% recorded in October and a decline of 1% in November of last year.

In Dublin residential property prices fell by 1.4% in November and were 17.6% lower than a year ago. Dublin house prices decreased by 2.4% in the month and were 18.1% lower compared to a year earlier. Dublin apartment prices were 16.1% lower when compared with the same month of 2010.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin) fell by 1.6% in November compared with a decline of 0.8% in the same month of last year. Prices were 14.5% lower than in November 2010.

Overall Decline: House prices in Dublin are 52% lower than at their highest level in early 2007. Apartments in Dublin are 58% lower than they were in February 2007. Residential property prices in Dublin are 54% lower than at their highest level in February 2007. The fall in the price of residential properties in the Rest of Ireland is somewhat lower at 42%. Overall, the national index is 46% lower than its highest level in 2007.

David McNamara, economist at Davy comments:

Residential property prices fall by 1.5% on the month in November

  • The decline in residential property prices of 1.5% on the month in November represents a 15.6% fall on November 2010;
  • The November decline follows a 2.2% decline in October and a 1.5% fall in September;
  • In Dublin, prices fell by 1.4% on the month and by 17.6% on November 2010

Today's index now shows a peak-to-trough decline of 46.3% nationally from 2007 peak

  • Residential property prices in Dublin have now fallen 53.8% from their 2007 peak;
  • Outside of the capital, prices have fallen by 42.5% overall.

Apartment prices rise slightly on October

  • Apartment prices have bucked the trend slightly, with prices up 2.7% nationally and 4.7% in Dublin on October;
  • However, apartment prices are down annually by 16.9% nationally and by 16.1% in Dublin, with peak-to-trough declines of 57.9% nationally.

Budget 2012 measures aimed at stimulating stagnant property market

  • Incentives for first-time buyers in the form of increased mortgage interest relief and capital gains tax rebates for properties held for a seven-year period will aim to kick-start the market in 2012;
  • While these measures are encouraging, house prices should continue to fall into 2012.
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