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Ireland Residential Property Values Increase By 12.5% in Past Year

The most recent property index from the Central Statistics Office (CSO) has confirmed that residential property prices rose nationally by 12.5% in the last 12 months. 

This result compares with a 12.2% increase in the year to December and an 8.8% increase in 12 months leading to January 2017. 

Residential property prices increased in Dublin by over 12% in the year to December. In the capital, home prices went up by 11.4% while flat prices increased 15% over the same time frame. 

The highest growth in house prices took place in Fingal at 14.2%. The lowest was in Dún Laoghaire-Rathdown, where an increase of 9% was recorded. 

The West of Ireland showed the most price growth at 17.2% while house prices increased by 9.9% in the South-East. In the rest of Ireland, with the exception of Dublin, residential property prices were 13% higher in the year to January. 

The national index is still approximately 22.3% lower than the record level it reached in 2007. 

Rachel McGovern, Brokers Ireland Director of Financial Services, said that such a quick amount rate of price growth will leave many young people less well off in their later years. 

She said that rates of home ownership were at 67%, down from the 80% reported in 2016, while during the same period total housing stock increased by only 0.4%. 

 

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Ms. McGovern pointed out that while some may claim that the nation is progressing by not being so tied to home ownership, but Brokers Ireland and other financial planners challenge such a viewpoint in an environment where people in most parts of the country are paying rent that exceeds mortgage payments. 

She said that while the construction of new homes was increasing the shortage of available housing remained acute, resulting in higher rents and house prices. In her opinion, the supply situation required emergency action from decision-makers. 

Savills Director of Research John McCartney anticipated that property prices would keep rising for the next five years or so but from the middle of the year growth rates would slow down substantially.  

He said that while growth rates could and probably would be tempered, the growth itself could not be stopped at present due to market fundamentals. Too many people wanted the few homes that were available, and despite the best efforts of many parties, building enough properties to fill current needs would take time. 

Mr. McCartney said that aspiring homeowners could take comfort in the probability that the high growth taking place now would not last. 

Specialists in Construction Insurance

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