Thursday 18 July 2019

Housing issue a 'hot potato' as residential property prices rise 12.1pc

Dublin properties rise 86pc from 2013 trough

(Stock photo)
(Stock photo)
Louise Kelly

Louise Kelly

Residential property prices nationwide rose by 12.1pc, down slightly from the revised annual increase of 12.2pc posted in September.

Latest CSO figures reveal that, in Dublin, prices increased by 11.6pc in the year to October; house prices in the region also increased 11.6pc while Dublin apartments rose 12.1pc in the same period.

Property prices outside of Dublin were 12.8pc higher in the year to October; house prices rose 12.5pc and apartment prices increased 15.9pc in the same period.

Overall, the national index is still 23.7pc lower than its highest level in 2007. Dublin residential property prices are 24.7pc lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 29.6pc lower than their May 2007 peak.

However, from the lowest level in early 2013, prices nationally have increased by 70.2pc;  Dublin residential property prices have risen 86.4pc, while residential properties in the Rest of Ireland index have increased 61.9pc.

Merrion Capital's Alan McQuaid said that housing has now overtaken health as the main political 'hot potato'.

"But as we wait for the measures to come through, prices will continue to rise. We see house price growth staying in positive territory on a year-on-year basis for the foreseeable future, with the annual rate of increase now looking like it’s set to remain in double-digits for the remainder of 2017 and well into 2018," he said.

In the Central Bank's second edition of the 2017 Macro-Financial Review (MFR) today, the bank said it is important that households remain conscious of the risks associated with taking on new debt.

"The Central Bank stands ready to adjust the mortgage measures and other tools such as the countercyclical capital buffer that require banks to hold additional reserves, in order to safeguard financial stability," it said.

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