Inflation has slowed but property prices continue to rise, report shows

Property prices are continuing to rise in Ireland but, according to the CSO's Residential Property Price Index, inflation is slowing.

In the 12 months to February, prices increased by 4.3% nationally. This compares with inflation of 5.2% in the 12 months ending January and 6.3% for the period ending December.

In February 2018, the market had witnessed a 12.5% annual rise.

All regions saw an increase but in Dublin, inflation had slowed to 1.4% in the year ending February. Excluding the capital, the national rate increased by 7.5% in the last 12 months, with the mid-West seeing an increase of 14.1%.

In Dublin, residential property prices rose by 1.4% in the year to February. The highest growth in the county was South Dublin - 3.1% - with the lowest growth seen in Dubin city at 0.9%.

The national index is now 8.8% lower than its highest level in 2007. Residential property prices in Dublin are 22.1% below their February 2007 peak.

Property prices nationally have increased by 81.3% since their trough in early 2013. In Dublin, prices have risen 92.8% since their February 2012 low, whilst residential property prices in the rest of Ireland are 77.8% higher than at the trough.

Buyers paid a median price of €250,000 in the 12 months ending February 2019. The Dublin region had the highest median price at €368,875, with Dun Laoghaire-Rathdown showing the highest median within this market at €540,000.

The highest median prices outside Dublin is in Wicklow (€317,500) and Kildare (€294,999), while the lowest are €98,000 in Longford and €100,000 in Leitrim. The median prices in other counties is:

  • Cork city and county €240,000
  • Kerry €160,650
  • Waterford €165,750
  • Limerick €187,250
  • Tipperary €145,000
  • Clare €170,000

The CSO also tracks sales by Eircode. All ten of the most expensive Eircode regions are in Dublin, with the highest non-Dublin areas all in the immediate commuter belt. Greystones, Dunboyne and Bray are next in line.

In Cork, Kinsale ranks highest at €334,999, with Ballincollig (€330,000), Carrigaline (€290,000) and Glanmire (€285,000) all among the most expensive areas. Buyers on the northside of Cork city parted with a median price of €218,000, with those on the southside spending a median of €287,000.

Meanwhile, a new Eurostat report shows that house prices in Ireland are growing significantly faster than the European average.

A new House Price Index from the statistical office of the European Union shows that prices rose by 4.2% in both the euro area and the EU in the fourth quarter of 2018 in comparison to the same quarter the previous year.

The report uses the CSO Property Price data up to November 2018, when prices in Ireland had risen by 7.2% in a 12 month period.

Among the member states to see higher growth than Ireland are Slovenia, where prices increased by 18.2%, Latvia (11.8%) and the Czech Republic (9.9%).

Price increases in Ireland far exceed those in the United Kingdom (2.6%), Germany (4.6%) and France (3.2%), but are lower than those in Poland (7.6%), the Netherlands (9.3%) and Portugal (9.3%).

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