Property prices continue to rise

FIGURES released by the CSO last week show Dublin residential property prices grew by 2.7 per cent in July and are now 23.2 per cent higher than a year ago.

House prices in the city rose by 2.5 per cent during July and were 23.1 per cent higher compared to a year earlier. Dublin apartment prices were also higher rising 26.3 per cent when compared with the same month of 2013.

CSO officials say prices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility.

The price of residential properties in the rest of Ireland rose by just 1.3 per cent in July compared with a decrease of 0.1 per cent at the same time last year.

The latest figures mean that house prices in Dublin are 41.2 per cent lower than at their highest level in early 2007 and apartments in the city are 48.4 per cent less than they were in February 2007.

Overall, residential property prices in Dublin are 43 per cent lower than at their highest level in February 2007.

Property Industry Ireland, the group that represents companies operating in the property sector, said the CSO’s latest figures further highlights serious supply problems in the housing market.

PII director Peter Stafford said:

“The figures show the real impact of a lack of new supply into the housing market.

“With no new major housing schemes in urban areas reaching the market, and interest amongst buyers improving, it’s not surprising that prices continue to rise so fast, especially in Dublin.

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