Property market dips once more
Published 26/03/2013 | 11:56
The property market dipped again last month despite some signs of improvement in the Dublin market over the last year.
Prices were down 1.5% overall in February with houses falling by 1% in the capital alone.
However, the Central Statistics Office (CSO) noted that houses in Dublin are now 2.5% dearer than they were this time last year.
The value of homes in the rest of the country fell by 2.1% last month compared with a drop of 3% in the same month last year. Prices were down 6.1% over the year.
According to the CSO property index, the value of a Dublin home has collapsed 55% since the boom ended in spring 2007.
The average house in the capital would now set a buyer back 237,000 euro.
Overall, the national index is 51% lower than its highest level in 2007.
A further breakdown of the CSO index showed Dublin apartment prices were 7.8% higher when compared with the same month of 2012 but statisticians warned that the apartment sector is much more volatile as it is based on small numbers of transactions.
David McNamara, of Davy stockbrokers, said the property market was split between Dublin, which has been hit by a lack of supply in some areas, and the rest of the country, suffering an overhang of supply. "Supply shortages in some Dublin areas are now beginning to exert upward pressure on prices, while the glut of stock outside the capital will continue to weigh on prices," he said.
Meanwhile, data from the property price register showed 2,769 transactions in the first two months of the year, a 4.8% rise on the year.