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Dublin's property prices rocket by €8,100 in a month

DUBLIN house prices jumped by another 2.7pc in the month of July.

The figures from the Central Statistics Office show that Dublin home prices rose by 2.7pc in July - representing an €8,100 increase on the value of a €300,000 house in just over four weeks.

This latest boost in the industry is a mirror of the 2.8pc hike experienced in July 2006 - the last summer period of the boom.

RISING

Property prices around the country are now rising as fast as they did at the height of the boom.

Outside of Dublin, prices increased by 1.3pc in July.

The increase in Dublin represents a €3,900 increase on the value of a €300,000 house in just over four weeks.

The hike compares with the 1.5pc rise experienced in July 2006 outside of the capital, the last summer period when prices were rising fastest and the market was at its most heated.

Over the course of a year, national prices increased by 13.4pc according to figures released by the Central Statistics Office (CSO).

The July figures cover a period when the property market traditionally quietens down for its annual end of summer lull. In Dublin, home prices rose even faster last month, by 2.7pc.

The figures outline that Dublin home prices have now had 12 successive months of double-digit growth on a yearly basis.

However, it's not all bad news for prospective home-buyers. House prices in Dublin are still 41.2pc lower than they were at the peak in February 2007.

A report earlier this week estimated that cash buyers have been reduced by 35pc, an indication that more people are actually successful in obtaining a mortgage and purchasing a house by the traditional route.

Nationwide, house prices have risen in the year to July by 13.4pc compared with 12.5pc in the year to June.

Demand

John FitzGerald, senior economist with the ESRI said that there was a lack of supply which drives up demand.

"The annual figures show a substantial rise which could continue for some time," he said.

"This is a supply issue and it is also population linked."

hnews@herald.ie


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