Property prices rise nationally but fall in the capital
The cost of buying a home has risen by more than 10pc year-on-year, but prices are falling in Dublin.
The Central Statistics Office (CSO) says residential property prices in the capital have dropped by 0.4pc in June, compared with a national increase of 0.1pc across the country.
And although house prices continue to increase, the rate of that rise has slowed down.
This is likely due to new rules introduced by the Central Bank in February which require first-time buyers to have saved 10pc of the property price, and second-time buyers at least 20pc, before they can secure a mortgage.
The CSO's Residential Property Price Index says that in the year to June, prices increased nationally by 10.7pc. This compares with an increase of 13.8pc to May, and 12.5pc in the year to June 2014.
It also says that prices rose nationally by 0.1pc in the month of June, compared with 0.5pc in May and an increase of 2.9pc recorded in June of last year.
However, in Dublin, prices are falling, down 0.4pc last month. Despite this, prices are still 11.1pc higher than a year ago. The fall was more pronounced for apartments, which dropped 0.4pc, compared with 0.3pc for houses.
But the CSO said the figures for apartments were based on a low volume of sales.
Director of Research at Savills John McCartney said the figures showed that the housing market had "cooled significantly" with prices down 1.1pc in the year to date. Price growth was expected to be "modest" over the rest of the year, and he warned that investors could snap up the available homes.
"This slowdown was probably inevitable given the rapid price growth seen between April and October 2014, but it also reflects the impact of tighter mortgage lending rules," he said.
"Agents are reporting that there has been a definite cooling in the market. As the CSO index lags the market by three months, this means the rally that has been seen in the second half of recent years is unlikely to materialise in 2015."
Outside of Dublin, prices are up 9.7pc compared with June 2014. But the CSO notes that house prices are well below those experienced at the peak in 2007. Dublin house prices are down 38.4pc. Nationally, house prices are 40.5pc less today than at the height of the boom.