Saturday 17 March 2018

Regional property prices rising

House prices in Dublin were unchanged in April
House prices in Dublin were unchanged in April

The property market continues to show signs of stabilising, with prices outside Dublin now growing faster than in the capital.

Official figures from the Central Statistics Office (CSO) revealed overall improvement in prices of 0.8% in April.

But a breakdown showed that the market outside of Dublin grew by 1.2% in the month while the capital only saw improvements of 0.2%.

The CSO said that house prices in the city were unchanged in April but were up 1.3% over the course of the last 12 months.

Since the crash kicked in six years ago the overall market value has been halved while in Dublin house prices are down on average 55%. Last month was the first time since November that the overall residential property market saw an increase.

Davy Stockbrokers said the pattern over the first few months of the year was a sign of normality returning to the market after a big rush to buy under a mortgage interest relief scheme at the end of 2012. The company said that the market had been depressed in the first three months.

"New mortgage lending declined a massive 24.2% year-on-year in the first quarter," Davy's said. "This might help explain the sharp dip in prices at the start of the year following the stabilisation at end-2012."

Davy also said that cash buyers accounted for 40% of transactions last year and 61% in the first three months of the year.

Meanwhile, Simon Stokes, chairman of the Society of Chartered Surveyors Ireland (SCSI), said the report cannot be an accurate reflection of the market with factoring in cash sales.

"It is our experience that demand for family homes in good condition in well established areas (of Dublin) has pushed prices higher than 1% and as such a broad average figure is no longer reflective of the heterogeneous nature of residential properties," he said.

Press Association

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