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Property prices rose nationally in November but are down in Dublin

 

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Demand for properties is currently outstripping supply

Demand for properties is currently outstripping supply

Demand for properties is currently outstripping supply

Property prices rose slightly in November as the demand for homes outstrips supply.

Prices were up by 0.2pc nationally in the year to November, new figures from the Central Statistics Office (CSO) 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.

Construction of homes was halted during the first lockdown, leading to a shortage of new builds.

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

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 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 Dublin were Wicklow at €340,000 and Kildare €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.

Peak

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

A number of property experts predict prices will continue to rise this year.

Demand for property has not been hit by the pandemic as most of those out of work were not earning.

It is estimated that around 20,000 housing units will be built this year, but the Economic and Social Research Institute estimates there is demand for 28,000 units.

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

"Alongside relatively robust demand, 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, including local authorities, government-backed housing bodies and private investment funds, are snapping up property. He said 40pc of every new home is being purchased by non-households, rising to 50pc in Dublin.


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