Business Property & Mortgages

Saturday 23 August 2014

'Widening gap' in city and rural house prices

Colm Kelpie

Published 30/06/2014 | 02:30

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House prices graphic in Ireland.

THE gap between city and country house prices continues to widen, a new survey has found.

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Overall the average national asking price has increased for the first time in about eight years.

House prices in Dublin rose 4.5pc between April and June – the fifth quarterly rise in a row, according to the latest price survey from Myhome.ie

Outside of the capital, the national average asking price was up 1.3pc over the same period. This was the first such increase since the start of 2006, the report said. Report author Caroline Kelleher, of DKM Economic Consultants, said despite the national rise, the gap between Dublin and the rest of the country continues to widen.

"Supply constraints are clearly a key factor in Dublin and other key markets and these would appear to be driving the current price increases. Given the time lag in addressing supply issues it is likely prices will continue to rise in these areas for some time to come," she said.

The latest data comes days after the Central Statistics Office (CSO) said the value of homes and apartments was rising at a double-digit level for the first time since the property bubble burst.

Myhome.ie managing director Angela Keegan said the widening gap between the country and the capital as well as the volatile supply issue needs to be addressed. "It's heartening to see asking prices nationally rise for the first time in eight years. While this is a landmark on the road to recovery, we are closer to the start of that journey then the finish," she added.

Irish Independent

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