Belfast Telegraph

Thursday 31 July 2014

Homes lack drives Dublin price leap

Lack of supply is pushing up Dublin house prices.

The weak supply of new houses in the Dublin region will be one of the main challenges facing the property market next year, it was claimed.

MyHome.ie warned further price increases are likely in the capital next year, with the gap between Dublin and the rest of the country set to grow further.

There are approximately 3,000 properties on sale in Dublin - down 30% from the same time last year - with very low volumes of house building and planning permission being granted for apartments.

Angela Keegan, managing director, said 2013 was a positive one overall for the property sector after six very challenging years.

"People are looking ahead to 2014 with renewed confidence," she said.

"It's very heartening to see the median price of four bed semis rising or remaining stable in most of Leinster and Munster.

"We believe prices will continue to rise in key areas of Dublin, Cork and Galway in the coming year. In large part this will be driven by the weak supply situation. "

MyHome.ie's property index revealed average asking price in Dublin rose by 2.4% last year, the largest annual increase in seven years, to 241,000 euro (£220,000).

Nationally, the average asking price is 189,000 euro (£157,000).

Dublin dominates the property market with over a third of all transactions.

The average time to sale agreed is three months in Dublin, five months in Galway, six months in Cork, seven months in Waterford and 10 months in Limerick.

Caroline Kelleher, from DKM Economic Consultants, said while the Dublin property market turned a corner in 2013, it has yet to bottom out.

"The market turned in Q2 when the year on year change in mix adjusted asking prices in Dublin entered positive territory for the first time in six years," she said.

"While the rate of decline in prices nationally continued to moderate throughout 2013, price increases in the capital, due in large part to a shortage of supply, has meant the divergence between Dublin and the rest of the country is growing and looks set to widen further in 2014.

"There is now a 28% price differential between mix adjusted asking prices nationally and in Dublin compared to a 17% difference a year ago."

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