House prices rising faster than in EU

Irish house prices are rising faster than most in the EU, where prices continue to mostly fall.

Having plummeted by more than half in Ireland on average, they rose an average of 3.7% in the three months to the end of September compared to the same period in 2012 — eight times higher than the EU average which saw a drop of 0.5%.

The jump when the same quarter — July to September — is compared to the previous quarter, is even more steep at 4.1% — the highest after Estonia, and six times the EU average increase of 0.7%.

Separately, new figures from Irish estate agent, Douglas Newman Good, showed that prices for second-hand houses in Dublin, rose by nearly 18% last year; the sixth consecutive quarter of growth — boosted by improving buyer sentiment and the continued outstripping of demand over supply.

“It is very encouraging to see 18 straight months of price increases for residential property in the capital. This has been largely driven by an improvement in consumer sentiment and confidence in the property market both from within Ireland and externally from non- Irish investors investing in the market,” said DNG chief executive, Keith Lowe.

The first nine months of 2013 saw cash buyers account for 54% of house sales in the capital, although that fell back to 40% closer to year-end, with reliance on mortgage lending reappearing.

Elsewhere, GeoDirectory — the commercial and residential building data- base co-owned by An Post and Ordnance Survey Ireland — said 2013 saw a 36% decline in new buildings on its register; down from 12,541 to 7,943. Dublin was the only county to record an rise — 16% to 964 new buildings.

The total number of buildings in the Republic now stands at just over 1.9m, as measured by GeoDirectory.