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.
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”
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.
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.
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