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Property prices rose in November despite pandemic


Couple looking at houses

Couple looking at houses

Couple looking at houses

Property prices rose slightly in November as pent-up demand for homes is outstripping supply.

Prices were up by 0.2pc nationally in the year to November, new figures from the Central Statistics Office for property sales show.

This compares with a decrease of 0.5pc in the year to October.

Prices nationally rose by 0.4pc in the month of November compared with the previous month.

In Dublin, residential property prices saw a decline of 0.9pc in the year to November, while property prices outside Dublin were 1.2pc higher.

Outside Dublin, prices for houses were up by 1.1pc, and apartment prices were up by 1.9pc, the CSO said.

The region outside of Dublin that saw the largest rise in house prices was the South East at 3pc.

The Mid-West recorded a 4.3pc decline.

Statisticians said new properties rose in price in the July to September period, while the price of second-hand properties fell.

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This is likely to reflect the fact that construction of homes was halted during the first lock-down, leading to a shortage of new builds on the market.

In November, 4,236 residential property purchases were filed with Revenue.

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This represents a 6.1pc increase compared to the 3,991 purchases in November 2019.

It is up 10.2pc compared with the 3,845 purchases in October last year.

The total value of transactions filed in November was €1.3bn.

According to the CSO, Revenue data shows that there were 1,438 first-time buyer purchases in November.

This is an increase of 6.1pc on the 1,355 recorded in November 2019.

These purchases were made up of 410 new dwellings and 1,028 existing dwellings.

Households paid a median, or typical, price of €258,000 for a dwelling on the residential property market in the year to last November.

The Dublin region had the highest median price at €377,500.

Within the Dublin region, Dún Laoghaire-Rathdown had the highest median price at €530,000, while South Dublin had the lowest at €350,000.

The highest median prices outside of Dublin were in Wicklow at €340,000 and Kildare with residential properties selling for €319,000.

The lowest price was €108,000 in Longford.

The national property price index is now 16.9pc lower than its highest level in 2007.

Dublin residential property prices are 22.2pc lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 19.2pc lower than their May 2007 peak.

A number of property experts are predicting that prices will continue to rise this year.

Demand has not been hit by the pandemic as most of those out of work were not earning enough to secure a mortgage.

Currently construction has been halted. It is estimated that around 20,000 housing units will be built this year.

But the Economic and Social Research Institute estimates that there is demand for 28,000 units.

Economist with Goodbody Stockbrokers Dermot O’Leary said price rise trends were evident across the country coming into the end of the year, with annualised growth in the three months to end of November at 5%.

“Alongside relatively robust demand (including a surge in mortgage approvals), the supply of properties for sale is now at all-time lows, thus putting upward pressure on prices,” he said.

Mr O’Leary said non-households, which include local authorities and Government-backed housing bodies and private investment funds, are snapping up property.

He said four out of ten of every new home is being purchased by non-households, rising to 50pc in Dublin.

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