Property prices in Dublin soar - but rest of country remains unchanged
PROPERTY prices in Dublin are soaring while the rest of the country remains unchanged as the 'two- speed' property market continues apace.
House prices in the capital are up 13.1pc on last year's figures, with an increase of 13.8pc in all residential property prices, including apartments.
However, the stagnation continues everywhere else, with figures for the residential market in the rest of Ireland, excluding Dublin, unchanged in the month of November.
This represents a decline in the market, with prices 0.6pc lower than in November 2012.
Overall at a national level, including Dublin, the residential property prices show an increase of 5.6pc. This represents a fall from the month of October, when an increase of 6.1pc was shown.
The steady rise in house prices began in Dublin in July -- when prices were up 7.5pc on the previous year.
Each month thereafter saw a steady hike with prices up 10.5pc on the previous year in August, while the following months each saw prices go up 2pc each month.
Prices rose 1.3pc last month in Dublin. This was compared to a 0.6pc rise in residential property prices nationwide in the month of November.
Notwithstanding the increases, house prices in Dublin remain 47.5pc below the peak of the housing market in early 2007.
Meanwhile, Dublin apartment prices jumped 20.7pc on a yearly basis -- though they are still 56pc below their peak levels, according to the CSO, which also warned that the figure was based on a low number of sales and so could be inaccurate. Houses and apartments together saw an increase of 5.6pc nationally in the October 2012 to October 2013 period. But when the Dublin figures are extracted, the prices of residential property overall actually fell by 0.6pc -- confirming that the recovery in the market remains largely a Dublin phenomenon.
Investec economist Emmet Gaffney said supply remains a major issue in Dublin, with new build activity at historically low levels. "In large parts of the rest of the country, the opposite is the case, with excess supply weighing on prices, along with weaker economic fundamentals," he said.
Meanwhile, new figures from the Irish Banking Federation (IBF) show the number of mortgage approvals slipped by 7.9pc in November, compared to the same period last year.
Some 1,852 mortgage approvals were granted last month -- of which the vast majority -- at 1,716 -- were for house purchases rather than apartments.
The figures show around €334m in mortgages was approved last month -- down 3.5pc on the same period last year. Of this, 95pc was for house purchases. The average mortgage approval amount was €180,367, while a total of 15,601 mortgages were approved over the year to date -- up 5.8pc on last year.
IBF's chief executive Noel Brett said the figures for November confirmed the "monthly volatility" that was a pattern of the mortgage market at various times over the year.
He said the activity for the year as a whole "continues to show improvement" with indications that this growth trend would be evident in the end-of-year figures.