Belfast Telegraph

House prices increase by 2% in last year

The latest figures from the Central Statistics Office show that residential property prices growth is continuing to slow nationwide.

The lastest CSO figures show that residential property prices increased by 2% in the year to June (Dominic Lipinski/PA)
The lastest CSO figures show that residential property prices increased by 2% in the year to June (Dominic Lipinski/PA)

By Cate McCurry, PA

House prices across Ireland have increased by 2% in the last year, a report has shown.

The latest figures from the Central Statistics Office show that residential property prices growth is continuing to slow nationwide.

The rise of 2% in the year to June is compared to an increase of 2.6% in the year to May and an increase of 11.9% in the 12 months to June 2018.

In Dublin, residential property prices rose by 0.1% in the year to June, with house prices unchanged and apartments rising by 0.1%.

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Residential property price index.Graph from CSO Ireland.

The highest house price growth in Dublin was in South Dublin at 3.6%, while Dun Laoghaire-Rathdown saw a decline of 4.0%.

Residential property prices in Ireland, excluding Dublin, were 3.9% higher in the year to June, with house prices up by 3.6% and apartments by 6.1%.

Meanwhile, the region outside Dublin that saw the largest rise in house prices was the border at 14.7%, while the Mid-East recorded a decline of 0.1%.

Overall, the national index is 18.0% lower than its highest level in 2007.

Dublin residential property prices are 22.2% lower than their February 2007 peak, while residential property prices in the rest of Ireland are 21.3% lower than their May 2007 peak.

Property prices nationally have increased by 83.0% from their trough in early 2013.

Dublin residential property prices have risen 92.7% from their February 2012 low while residential property prices in the rest of Ireland are 81.1% higher than at the trough, which was in May 2013.

The Institute of Professional Auctioneers & Valuers (IPAV) said the continuing slowing in the rate of increase is indicative of a number of factors, including uncertainty among buyers.

Pat Davitt, IPAV’s chief executive said: “Would-be purchasers who have become more risk averse since the financial crisis would appear to be adopting a wait and see approach in the current uncertain environment, including Brexit.

“Confidence is critical and it is being dented with the negativity surrounding Brexit in particular.”

He said this was evident in the drop of 5.7% in the number of homes purchased between May and June 2019.

Pointing to the decline of 10.5% in the number of new dwellings transacted compared with June 2018 he said this is likely to indicate “a nervousness among some builders about investing”.

“While the capital is throbbing with international funds keen to build to rent and enjoy extremely favourable tax treatment, finance at reasonable rates of interest has been difficult to get for SME builders wishing to build,” he added.

“They may now feel somewhat less certain about building.

“For buyers trading up the gap between what they can get for their own property and the cost of buying a new one has widened considerably and many are not able to bridge the difference.”

PA

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