Property price rate of inflation continues slowdown

0
127

Property price rate of inflation continues slowdown


Stock image
Stock image

There has been a further slowdown in the rate of property price inflation.

Prices of houses and apartments are continuing to go up, but at their slowest rate in two years.

Central Statistics Office figures show residential property prices increased by 8.4pc nationally in the year to October.

The rate of increase was slower than in the previous two months, and slower than the same month last year. This is despite more properties being sold in October compared with the same month last year, with total transactions coming in at €1.3bn.

Dublin property prices rose by 6.3pc in the year to October.

Economists say that Central Bank mortgage restrictions are affecting Dublin prices in particular, especially the capital’s more expensive areas.

When Dublin is excluded, residential property prices rose by 10.6pc in the year.

The region outside of Dublin that saw the largest rise in property prices was the mid-west at 21.5pc, while the smallest was recorded in the mid-east at 8.3pc.

The median, or middle, price paid for a home in the State was €256,000 in October, up €1,000 on the previous month.

Buyers in the Dublin region paid the highest median price at €365,000. Within the Dublin region, Dún Laoghaire-Rathdown had the highest at €534,999, while Fingal and South Dublin shared the lowest price of €325,000.

The lowest median prices nationally were paid in Leitrim at €97,250, with a median price of €100,000 in Longford.

Overall, the national index is almost 18pc lower than its highest level in 2007. Dublin residential property prices are 20pc lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 23pc lower than their May 2007 peak.

KBC Bank economist Austin Hughes said the latest figures suggest an orderly easing in property inflation is under way as the gap between supply and demand narrows.

Economist with stockbroker Merrion Capital Alan McQuaid said first-time buyers continue to be priced out of the market.

Irish Independent

LEAVE A REPLY

Please enter your comment!
Please enter your name here