Thursday 17 October 2019

Capital's property prices flat over last year

Keith Lowe: Central Bank lending rules are slowing price rises
Keith Lowe: Central Bank lending rules are slowing price rises
Charlie Weston

Charlie Weston

Property prices in the capital were flat over the last year, according to a leading estate agency.

DNG said its latest quarterly market report found that average prices in Dublin rose by just 0.9pc in value in the year to this month.

Prices were unchanged in the first three months of the year.

Apartment values across the city increased only marginally in the three months to March.

Over the last year the price of apartments is up 1.4pc, according to the DNG House Price Gauge.

The estate agency said the data continues a trend of moderation in the rate of growth that has been evident over the last few months.

Central Bank lending limits were cited as the main reason prices have stagnated in the capital. They have risen so much over the past few years that buyers can no longer afford to borrow enough to buy them.

A greater supply of new homes is also depressing prices. However, starter homes favoured by first-time buyers saw stronger price appreciation than the average, driven by strong demand.

The report highlights how homes in Dublin valued up to €300,000 increased by 3.3pc over the last year.

Properties over the €500,000 level only increased by 0.1pc over the same period.

Homes valued above that level remain 44pc below their peak level.

On the other hand, properties priced between €300,000 and €500,000 have recovered approximately 75pc of their value.

Only west Dublin saw an increase in values during the first quarter, with other areas of the city recording small decreases in the period.

Chief executive of DNG Keith Lowe explained that there are two primary factors influencing demand and prices in the resale market.

These are the Central Bank's mortgage lending rules and the increase in new dwelling completions across the capital.

DNG said we are now in a period of price stabilisation in the Dublin residential market.

Irish Independent

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