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Wednesday 11 December 2019

Property prices fall for third month in a row in the capital

Eoghan Murphy. Picture: Collins
Eoghan Murphy. Picture: Collins
Charlie Weston

Charlie Weston

Property prices have fallen in Dublin for the third month in a row.

New figures show that prices were down 1.3pc in the capital in the year to September.

Both house and apartment prices fell in Dublin.

Issues around affordability and mortgage lending limits were cited as reasons for the slowdown in prices in the capital. The fact that supply is beginning to catch up with demand was also cited as a reason for the fall in prices in Dublin.

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The sharpest declines have been experienced in the leafier and more expensive areas.

Dún Laoghaire-Rathdown saw house prices decline 6.8pc in the 12 months to September. The price of a typical house has fallen by €6,000 in the last month alone.

Nationally, prices increased slightly in the last year.

Costs are continuing to rise across the State but at a much slower pace than previously.

Prices were up 1.1pc nationally in the year to September.

This compares with an increase of 8.5pc in the 12 months to September last year, according to the Central Statistics Office (CSO).

Prices outside Dublin were 3.6pc higher in the year.

The region outside of Dublin that saw the largest rise in house prices was the Border at 11.8pc, while the smallest rise was recorded in the mid-east at 0.2pc.

Property prices nationally have increased by 85pc from their trough in early 2013. Dublin residential property prices have risen 95pc from their February 2012 low.

Economist with Goodbody Stockbrokers Alexander Wilson said there was a marked slowdown in properties valued at more than €400,000, particularly in Dublin.

Read More: Charlie Weston: 'We have gone past the point of affordability for many buyers'

He said this was due to the Central Bank lending limit pegging back prices at the higher end in Dublin.

Households paid a median price of €255,000 for a dwelling on the residential property market in the 12 months to September.

Dublin had the highest median, or typical prices, at €368,000 in the last year.

In the capital, Dún Laoghaire-Rathdown had the highest median price at €527,000, while Fingal had the lowest at €340,000.

Meanwhile, there has been a surge in apartment building.

In the three months to September there were 1,083 apartments completed, a rise of 81pc on the same quarter last year. Overall, some 5,667 new dwellings were completed in the third quarter. This works out at a 22pc rise when compared with last year, the CSO said.

The past year has seen 20,250 housing units completed.

It comes as a report by the Economic and Social Research Institute (ESRI) claimed houses are not overvalued. This is despite prices rising by 85pc since 2013.

The State-backed think-tank claimed the price surge since the crash was not out of line with the other economic indicators such as employment, wage growth and household spending.

But it admitted that "affordability remains a challenge".

It found that Dublin couples are spending 35pc of their income on mortgage repayments.

A figure over 30pc is generally used as a benchmark internationally for housing affordability.

Housing Minister Eoghan Murphy hailed the strong rise in the number of new homes completed.

He said it is important to continue to ensure that this trend is maintained.

On the property price index, the minister said the fact that Dublin decreased for the third month in a row, while there was a marginal rise nationwide, could be viewed as evidence that increased housing supply is coming on stream.

Irish Independent

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