Significant slowdown in property price increases, according to CSO figures

Significant slowdown in property price increases, according to CSO figures

Residential property prices are continuing to rise nationally but there has been a significant slowdown in the rate of increase in the last 12 months.

According to the latest Residential Property Price Index from the CSO, prices increased by 2% nationally in the year ending June 2019.

In comparison, in the 12 months ending June 2018, prices had increased by 11.9%.

Prices are on the rise in most of the country, though the rate of inflation is slowing in many areas.

In Dublin, prices rose by 0.1% as of the end of June, with the growth entirely stemming from apartment sales as house prices remained unchanged in the last 12 months.

In South Dublin, prices rose by 3.6% but in Dun Laoghaire-Rathdown, prices declined by 4%.

Excluding Dublin, prices were 3.9% higher in the year to June, with houses increasing by 3.6% and apartments by 6.1%.

The border region saw the biggest growth, at 14.7%, while the mid-east region declined by 0.1%.

Overall, prices are now 18% lower than the peak of the market in 2007 and 83% higher than they were at the lowest point of the crash in 2013.

In the last 12 months, Revenue recorded almost 45,000 purchases, with first-time buyers comprising almost one-third of all sales.

Non-occupiers, such as investors, were responsible for 16.7% of all purchases.

The report shows that households paid a median price of €252,000 in the 12 months to June 2019, with the Dublin region showing the highest median price at €365,000.

It also breaks down sales by Eircode, with all 10 of the most expensive Eircodes in Dublin.

The most expensive is A94 'Blackrock', at €610,000, while outside Dublin, Greystones (€423,722) and Dunboyne (€395,000) are the most expensive.

In the south, all of the most expensive Eircodes are in Cork, with Kinsale (€334,999) and Ballincollig (€330,000) the two most costly.

There has been a mixed reaction to the report.

Housing Minister Eoghan Murphy tweeted that the slowdown in inflation is a positive, claiming that the number of homes built in the last year "is having an impact".

The Society of Chartered Surveyors Ireland (SCSI) has warned that more needs to be done, though.

A SCSI spokesperson said that the government needs to act to ensure that there is "an adequate supply of serviced development land for residential development" to increase the number of houses and apartments being built.

SCSI has also called for the removal of the Help-to-Buy scheme, which is due to expire at the end of the year.

Johanna Gill, SCSI President, said the scheme is "demand-side initiative that has an inflationary effect" on property prices.

"More must be done to reduce the cost of constructing homes and make it more affordable for the average income earner," she said.

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