Property prices up 5.5% since January, says report

Residential property asking prices countrywide have risen by 5.5% since January 2006 alone, with a 14% increase since April 2005, according to a report released today.

The report from property website Daft.ie, provides an analysis of trends in the Irish property market and an overview of house prices and rental performance across all major Irish cities.

“Property sellers are now expecting 14% more for their properties than this time last year,” said Eamonn Fallon, director of Daft.ie. “This trend looks set to continue for the rest of the year.”

The Daft Quarterly Report for Quarter 1, 2006 found that house prices in Wicklow have grown at the fastest rate, increasing by 21% over the past 12 months.

This brings the average price of a property in Co. Wicklow to €534,000, compared to an average of €365,000 nationwide.

Clonakilty is now the most expensive town in Munster with an average house price of €350,000 compared to €325,000 in Cork City and less than €200,000 in Newcastle West.

Included in the report is a guest commentary from ESRI economist David Duffy.

“Economic forecasts suggest that employment and incomes will continue to grow and this year also sees SSIA’s starting to mature,” said Duffy.

“Surveys indicate that a sizeable portion of this money will find its way into the property market.”

“Overall economic growth is expected to remain strong at over 5% per annum in both 2006 and 2007.

“Thus, the Irish housing market should continue to be driven by strong activity levels.”