Friday 21 July 2017

Property price rises pick up steam again as hikes up over 10pc

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Charlie Weston Personal Finance Editor

The pace of property price rises has picked up again.

They were up 10.5pc in the year to April, which was stronger than the 9.6pc increase in March, according to the latest information from the Central Statistics Office.

Prices rose by 1.1pc in the month of April, as a chronic shortage of supply means buyers have to compete hard to secure a purchase.

In Dublin, residential property prices increased by 8.2pc in the year to April.

But higher price rises were recorded outside the capital, with a surge of 13.4pc.

The West region showed the greatest price growth, with house prices increasing by almost 18pc.

The Midland region showed the least price growth, with house prices increasing 9.3pc. Apartment prices in the Rest of Ireland increased 16.3pc in the same period.

Overall, the national index is 31pc lower than its highest level in 2007.

From the trough in early 2013, prices nationally have increased by 52.1pc.

Demand for housing is strong due to demographic changes, the lack of buildings during the downturn, the Government's help-to buy scheme and the relaxing of mortgage restrictions by the Central Bank.

The housing market report was released after Government advisers warned about the risk of the economy overheating if too many houses are built too quickly.

Despite a severe lack of housing in the country, the Fiscal Advisory Council cautioned about how the construction sector might return to normal building levels and how a surge in house building could inflate the economy.

And the figures on house prices and sales were also reported as the Paris-based Organisation for Economic Co-operation and Development warned about the risk of another property bubble.

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