Nationwide house price rise as sale averages at €181,000
PROPERTY prices outside Dublin are finally showing signs of stabilising, experts said.
They were reacting to figures indicating that prices in places outside the capital rose in four of the past six months.
The latest Central Statistics Office data indicates that the surge in Dublin property prices continued last month.
But outside the capital, prices are also showing signs that the worst may be over, economist with Investec Ireland Philip O'Sullivan said.
The CSO said property prices nationwide rose in December for the seventh month in a row.
Prices were up 6.4pc nationwide in December compared with the previous 12 months.
In Dublin the surge in values continued with a 16pc rise in both house and apartment prices in the past year. This was the strongest growth in annual prices since 2007.
Apartment prices in the capital were 21pc higher when compared with December 2012, but these figures are based on low levels of observed transactions.
However, the massive gulf in the two-tier property market continues with prices outside the capital up by 0.1pc last month, but down 0.4pc when compared with a year ago.
The average house nationally is now changing hands for €181,000, according to Goodbody Stockbrokers. In Dublin, the average price is €239,000, with properties valued at €151,000 outside the capital.
Goodbody economist Juliet Tennent said: "This is the third consecutive month where all indices have been flat or positive, indicating that property prices also started to stabilise outside Dublin in the final quarter of 2013."
The overall value of properties is now 46.8pc since the market peaked in February 2007, according to the CSO.
Estate agents said Dublin prices would continue to rise strongly until more properties were built in the capital.
Graham Murray of Savills said there was a need for an extra 25,000 new homes to be built each year to meet demand.
But the inability of builders to get funding for property development and planning permission barriers meant no new homes were being built, he said.
The official report from the property price register backs up figures showing a resurgent market in Dublin from leading estate agents and also websites like daft.ie.
The Society of Chartered Surveyors Ireland has issued a report citing similar figures to the CSO but rating agency Standard and Poor's warned that the bounce in the market will slow in 2015 as the issue of mortgage arrears will persist.