Wednesday 24 July 2019

Capital at 'peak affordability' as house price inflation eases

 

Dublin prices are now at the peak of affordability, experts say. Photo: Bloomberg
Dublin prices are now at the peak of affordability, experts say. Photo: Bloomberg
Charlie Weston

Charlie Weston

The rate of house price inflation eased off again in May, falling back to its lowest level in five years.

Dublin prices are now at the peak of affordability, experts say.

Some economists believe supply is starting to meet demand.

Prices rose by 2.8pc in May over the last year, compared with a surge of 12.4pc in the year to May last year, according to the Central Statistics Office.

Dublin residential property prices rose by 0.6pc in the year to May.

Economist Austin Hughes, of KBC Bank, said prices in the capital had now reached peak affordability. The typical price of property in Dublin is now €366,000, nine times average earnings.

He said: "Dublin house prices appear to have reached 'peak affordability' at a median price that has remained just over nine times average earnings since 2017."

Irish Independent

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