Residential property prices (houses and apartments combined) at a national level rose by 10.5% in the year to April, according to new official figures released this morning. This is up from the annual increases of 9.6% and 9.3% in March and February respectively.
In Dublin, residential property prices increased by 8.2% in the year to April. Dublin house prices increased 8.1% whereas apartments rose 8.6% in the same period. The highest house price growth in April was once again in Dublin City, at 11.1%. In contrast, the lowest growth was once more in Fingal, with house prices rising just 2.3%.
Residential property prices in the Rest of Ireland (i.e. excluding Dublin) were 13.4% higher in the year to April. House prices in the Rest of Ireland also rose 13.4% over the period. The West region showed the greatest price growth with house prices increasing 17.8%.
Conversely, the Midland region showed the least price growth, with house prices rising 9.3%. Apartment prices in the Rest of Ireland increased 16.3% in the same period.
According to Merrion Stockbrokers, “There is a housing crisis. A lack of supply of houses has pushed up the cost of a property and until this issue is addressed, prices will likely remain elevated, and unaffordable to many. The easing of mortgage lending restrictions imposed by the Central Bank combined with the tax-incentive scheme for first-time buyers announced in the October Budget will keep upward pressure on prices until new supply comes on the market.”
They added, “In our view, we need some radical thinking on this. We need to start treating houses solely as a place to live and not as an investment asset. Government policies, tax or otherwise, need to be geared towards favouring those wanting the house to live in over those who are buying purely for investment purposes.”
Written by Robert McHugh, on 7th Jun 2017. Posted in Ireland