Irish property prices dipped slightly in January but growth set to continue in 2016

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Irish property prices dipped slightly in January but growth set to continue in 2016

from admin on 03/02/2016 11:08 AM

Irish property prices dipped slightly in January but growth set to continue in 2016

Image Residential property prices in Ireland are up 7.6% year on year but fell by 0.5% in January, according to the latest index figures to be published.

 

The data from the Central Statistics Office shows that the annual growth of almost 8% compares with an increase of 6.6% in December and an increase of 15.5% recorded in the 12 months to January 2015.

Month on month, January's fall of 0.5% compares with an increase of 0.5% recorded in December and a decrease of 1.4% recorded in January of last year.

A breakdown of the figures shows that in Dublin property prices decreased by 1.2% in January and were 3.4% higher than a year ago. Dublin house prices decreased by 1.1% in the month and were 3.2% higher compared to a year earlier while apartment prices were 4.8% higher when compared with the same month of 2015.

Prices in the rest of Ireland rose by 0.1% in January compared with a decrease of 0.9% in January of last year. Prices were 11.4% higher than in January 2015.

But prices are still some way below their peaks in 2007. For example in Dublin prices are 34.9% lower than at their highest level in early 2007. Apartments in Dublin are 41.8% lower than they were in February 2007 while house prices are 36.8% lower than at their highest level in February 2007.

Prices in the rest of Ireland are 35.3% lower than their highest level in September 2007 and overall, the national index is 33.8% lower than its highest level in 2007.

A lack of supply, particularly in Dublin has been pushing up prices, according to Alan McQuaid of Merrion Stockbrokers, and he expects price growth to be more modest over the next year or two.

Investec economist Philip O'Sullivan pointed out that the market has been affected by new mortgage lending rules from the Central Bank introduced in February 2015 which restrict lending multiples and loan to values and he expects prices to keep growing once the impact has lessened.

Demand is likely to strengthen and with supply increasing only slowly, prices are expected to pick up as the year progresses, although short term trends are likely to remain weak, according to Dermot O'Leary, chief economist with Goodbody Stockbrokers.

 

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Reply Edited on 03/02/2016 11:09 AM.

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