Property prices pick up outside the capital
Published 17/10/2015 | 02:30
House prices in Dublin are levelling off - but property price inflation is picking up strongly outside the capital.
Prices in the capital increased by just 0.5pc in the last three months, compared to 4.8pc for the same three months last year, the latest property report from estate agency DNG said.
The impact of the lending restrictions imposed by the Central Bank have slowed down house price growth in urban areas, despite large increases in rental values, according to DNG chief executive Keith Lowe.
Prices had been propped up last year by a rush to buy before the end of 2014, to avail of tax breaks. But now prices are moderating, DNG said.
The average price of a resale property in Dublin remains more or less the same as it was at the end of 2014, at €374,000. Cash transactions now account for four out of 10 transactions.
Mr Lowe said that the majority of key urban areas outside the capital are currently experiencing price inflation.
This was due to the ripple effect from Dublin, Galway city and, to some extent, Cork city spreading throughout the country. The price inflation being experienced outside the capital will strongly outperform Dublin this year, he said.
DNG called for modifications to Central Bank lending limits.