Taylor Scott International News
Residential property prices in Ireland increased by 6.6% in 2015 with home values outside of Dublin recovering well, the latest data shows. The figures from the Central Statistics Office show that overall the strong growth experienced in 2014 slowed considerably last year. Prices increased by 16.3% year on year in December 2014. Month on month prices were up by 0.5% in the month of December compared to a decrease of 0.5% recorded in November. However, in Dublin residential property prices decreased by 0.5% in December but were 2.6% higher than a year ago. However, a breakdown of the figures show that house prices in the city decreased by 0.5% in December. But they are 2.1% higher compared to a year ago. Dublin apartment prices were 7.8% higher when compared with the same month of 2014. However, it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. Prices in the rest of Ireland rose by 1.2% in December compared with a rise of 0.7% in December of last year. Prices were 10.2% higher than in December 2014. The slowdown in price growth towards the end of 2015 means that prices are still some way down from their peaks in 2007. House prices in Dublin are 34.2% lower than at their highest level and apartment prices are 40.6% lower, while overall prices are 36.1% lower. In the rest of Ireland pries are 35.4% lower than their highest level in September 2007 and overall, the national index is 33.5% lower than its highest level in 2007. Meanwhile, IPD/SCSI quarterly property index shows that total return for Irish property was 25% in 2015, down considerably from the record breaking 40% achieved in 2014. MSCI, a provider of indexes, portfolio risk and performance analytics, also revealed that total returns from investment property hit 25% year on year in the fourth quarter of 2015, and described it as another strong year for the Irish market. This outpaced the UK market return of 13.8% as per the IPD UK Monthly Property Index with the Irish index now including residential properties for the first time since the third quarter of 2015. The office sector continued to lead the market, returning 5.6% in the last quarter to close out 2015 with a 27.1% year on year total return. The retail sector returned 20.9% and the industrial sector 21.2% for the year. Rental value growth was the key driver in the Irish market during 2015 as market rents grew by 14.4%. The index report says that strong rental value growth indicates a clear sign of business confidence in the Irish economy but also endemic of the limited supply of office space in Dublin city centre. 2015 also proved to be the year in which the Irish recovery spread nationwide, with obvious improvements in the regional retail sector and a growing demand for modern… Taylor Scott International
Taylor Scott International, Taylor Scott
