Taylor Scott International News
Residential property prices in Ireland increased by 8% in the year to February 2016, up from 7.6% in January and an increase of 14.9% recorded in the 12 months to February 2015. The data from the Central Statistics Office also shows, however, that month on month ere was no change in prices compared with a decrease of 0.5% recorded in January and a decrease of 0.4% recorded in February of last year. A breakdown of the figures show that in Dublin prices decreased by 0.1% in February and were 4% higher than a year ago. House prices decreased by 0.3% in the month and were 4% higher compared to a year earlier while apartment prices were 4.3% higher when compared with the same month of 2015. Property prices in the Rest of Ireland rose by 0.1% in February compared with no change in February of last year and were 11.5% higher than in February 2015. It means that house prices in Dublin are 35.1% lower than at their highest level in early 2007 and apartment prices are 40.9% lower than they were in February 2007. Prices in the rest of Ireland are 35.2% lower than their highest level in September 2007 and overall the national index is 33.8% lower than its highest level in 2007. Meanwhile, the latest data from Myhome.ie shows that house prices continued to rise in the first quarter of 2016 but the rate of increase has moderated. The national mix adjusted asking price measure rose by 2.2%, in the first three months, up 5.7% year on year while in Dublin asking prices were up 2.5% and 12.7% respectively. According to the survey the mix adjusted asking price for a house nationally is €198,000 while in Dublin it is €276,000. For new instructions the median price in Dublin has risen 1.4% in the first quarter to €299,000 while outside Dublin the figure has risen 6.3% to €169,000. The author of the report, economist Conall MacCoille from Davy, said the moderation in house price inflation was a positive development and did not mark a period of sustained declines. ‘A mix of factors probably explains the recent moderation in house price growth. First of all affordability was becoming stretched in Dublin. Secondly the Central Bank’s new lending rules may have reined in exuberant price expectations. Thirdly the end of capital gains tax exemptions may have inflated demand mid-year, leading to price falls towards the end of last year,’ he explained. The affordability index shows that house price to income ratio is highest in Dublin and Mid Leinster at 5.9 and 4.9 respectively while the midlands at 2.8 and the mid-west at 3.4 looks most affordable. MacCoille explained that the figure for the country as a whole is five and although Irish property prices are still well below 2007 peak levels, they no longer look cheap relative to incomes he said and he believes that population increases and supply constraints will… Taylor Scott International
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