HOUSE prices in Dublin rose by a whopping
?¬5,000 a MONTH in the first quarter of this year as demand continued to outstrip supply in the capital.
According to the latest figures from the DNG House Price Gauge, there was an 8.9 per cent average increase in prices from January to the end of March.
There was an annual price increase of 23 per cent to the end of March as prospective buyers flooded a market with a dwindling supply of homes.
This, according to DNG (Douglas Newman Good), a nationwide estate agent with a network of over 70 offices spread throughout the country, is further indication of realignment of house prices in the city.
“This is good news for anybody who purchased a house in the greater Dublin area in the last 18 months and those in negative equity,
? said Keith Lowe, CEO.
“We have also noted a marked improvement in consumer sentiment coupled with a significant increase in the availability of mortgage finance.
“We anticipate further market recovery this year in the capital and in a number of other key urban areas outside Dublin.
?
According to the estate agency, properties in the entry-level house and apartment sector show the biggest increase at 12.9 per cent.
The average resale of a Dublin house now stands at
?¬329,719 reflecting an annual increase of
?¬62,000 or
?¬5,000 each month.
Rising rents and the creation of an addition of 20,000 new households annually have all contributed to the increasing house inflation, DNG states.
And although residential property prices remain 50 per cent below their peak, there has been a 36 per cent increase on average since the market low point in early 2012.
Houses in the west of the city experienced the biggest annual increase at 30 per cent while properties below
?¬250, 000 increased annually by 28 per cent or 12.9 per cent in the January to end of March period.
“Property prices in the capital were always likely to rebound quickly as they fell too fast and too far,
? Mr Lowe added.