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Friday 30 September 2016

Property prices rise due to lack of supply

Published 26/05/2016 | 02:30

Housing Minister Simon Coveney. Photo: Tom Burke
Housing Minister Simon Coveney. Photo: Tom Burke

Property prices nationwide rose marginally last month as a shortage of homes to buy continues to push up values.

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Dublin led the rise, but there was a fall in prices outside the capital.

Property experts said the moderate price growth was despite a deepening accommodation crisis across the country.

The new Government has said that Housing Minister Simon Coveney will come up with an action plan for housing inside 100 days.

Prices across the State were up 0.3pc in the month of April, and have now risen by 7.1pc in the previous 12 months.

The Central Statistics Office said that Dublin prices were up 1.6pc in April. When compared with a year ago, prices were 4.6pc higher.

However, there was a fall outside Dublin. Residential property prices in the rest of Ireland fell by 0.6pc in April.

But over the past year prices were 9.5pc higher.

Across the country, prices are down by a third since the market crashed in 2007, the CSO said.

Property Industry Ireland, the Ibec group that represents companies working in the property sector, said that the moderation in growth was masking an ongoing accommodation crisis, especially in the rented and social housing sectors.

Director of Property Industry Ireland Dr Peter Stafford said: "While moderation in house price growth is good for those looking to buy their own home, there is little good news in these figures for tenants or those looking for social housing where a crisis of accommodation still exists."

Economist with stockbroker Merrion Capital Alan McQuaid said a lack of supply of houses has clearly pushed up prices, particularly in the Dublin area in the past three years.

Director of research at Savills Dr John McCartney said the shift to renting means the Dublin market may become increasingly like London with expensive properties, many of which are owned by investors.

Irish Independent

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