Real estate and retail set for Christmas cheer
Published 23/11/2015 | 02:30
House prices and retail sales are among the economic data due to be released this week, with the former expected to show further strong growth outside Dublin, while within the capital the rate of growth is expected to remain more subdued.
In the year to September, residential property prices at a national level rose by 8.9pc, the 28th year-on-year increase in a row, but down from the year-on-year rise of 9.5pc posted in August.
Analysts believe the mortgage deposit rules introduced by the Central Bank earlier this year are weighing on the market. "One has to assume that the tighter mortgage lending restrictions imposed by the Central Bank and the end of the CGT property purchase incentive scheme as announced in Budget 2015 have weighed negatively on the market this year," said Alan McQuaid, of Merrion Stockbrokers.
"Still, the generally better economic backdrop, particularly in relation to the labour market, should see house price growth remaining in mid to high single digits on a year-on-year basis for a while yet even with credit restrictions and increased planning permissions," Mr McQuaid added.
Retail sales are expected to continue the rise seen so far this year, which would be welcome for traders as the busy Christmas season moves up a gear.
Headline sales were up 0.3pc in the month in September, and were 8.6pc higher in the year in volume terms.
Overseas, data from the US is expected to show that the world's biggest economy probably expanded at a faster pace than initially estimated in the third quarter, reflecting a smaller inventory correction, economists forecast.
The Commerce Department's second estimate of gross domestic product for the quarter is projected to show an annualised 1.9pc gain after a previously reported 1.5pc.
In the UK, Chancellor George Osborne will be presenting the government's spending review to the House of Commons.