Property prices jump by more than 12pc in year
National index still 23.7pc lower than 2007 peak
Property prices across Ireland have jumped by 12.1pc in the year to October, according to the latest figures published by the Central Statistics Office (CSO).
The rate of increase is significantly higher than the 7.5pc rate of inflation recorded in the previous year to October 2016. It also shows that efforts to slow property price inflation are largely failing.
However the rate of increase also represents a very slight fall on the previous month's figure of 12.2pc.
The highest growth nationwide was experienced in the west of Ireland where prices increased at 15.8pc, coming up fast from a very low base. Elsewhere, the midlands had the lowest rate of increase nationally with increases of 8pc - a rate of increase which is still considered heated by international standards.
In the capital, Dublin residential prices increased at a slightly lesser rate in the same period - up by 11.6pc - although apartment values jumped at a higher rate of 12.1pc. And reflecting the higher competition for more affordable homes which can be bought with mortgages under strict lending rules, the highest increases in the capital were in the South Dublin Council area where values increased by 14.4pc. In contrast, the lowest growth was in the much more expensive Dún Laoghaire Rathdown jurisdiction, where the figure was 9.7pc.
Overall the national index is 23.7pc lower than at its highest level in 2007 and from the lowest point in 2013, prices have increased nationally by 70.2pc.
The CSO index is important because it is based on actual sales and data mined from the Residential Property Price Index (RPPI).
However because of continued delays in registering property sales - stamp duty returns have a 44-day submission deadline - it is released many weeks behind other property market data, much of which is based on less reliable asking prices.
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," he said.
"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."
Responding to the house price data, Pat Davitt of the Institute of Professional Auctioneers & Valuers (IPAV) said while there was a commitment to "examine the cost of construction" in the Government's 'Rebuilding Ireland' strategy there has not been additional detail on how to achieve this.
IPAV's chief executive added that the October Budget promised a new €750m Home Building Finance Ireland (HBFI) scheme. "That has the potential to make a difference if it ensures low cost loans go to SME builders throughout the country," he added.
"Post Budget it emerged that these loans could be at interest rates of as high as 8pc, at a time when money can be borrowed by institutions for less than a third of that. In addition it has also been indicated that these loans may not begin to flow until well into 2018."