Property transactions plummet after Covid-19 restrictions - CSO
A 40% decline in property sales was reported by the CSO.
House sales in Ireland plummeted by more than two-fifths for August 2020 compared to 2019 as the disruption caused by Covid-19 restrictions makes its impact in the latest Residential Property Price Index (RPPI) data released by the Central Statistics Office (CSO).
The effect of movement restrictions due to the pandemic was visible in the reduced number of transactions in the property market according to the CSO leading to some volatility in the price index.
The reported 2,359 transactions in August represented a 40.2% fall compared to the 3,947 purchases recorded in August 2019 and a 7.9% drop compared to 2,561 purchases in July 2020.
According to the CSO these transactions totalled €699m.
Revenue data compiled by the CSO also showed a decline in first time buyers for August 2020 when compared to 2019.
795 first-time buyer transactions were reported for August 2020 representing a decrease of 33.9% compared to 1,202 purchases recorded in August 2019.
Overall, residential property prices fell in Ireland by 0.6% year on year for August 2020 when compared to the 1.9% increase recorded in 2019.
Dublin property prices declined by 1.6% with house prices falling in the city by 3.4% but prices increasing in Fingal by 1.7%.
Outside of Dublin, residential property prices were 0.3% higher to August 2020 with house prices rising 0.4% but apartments down by 0.7%.
The south-west saw the largest increase with house prices rising by 5.2% while prices in the Border region dipped by 2.7%.
The national price index is nearly 20% lower than its highest level in 2007 at 17.6%, with Dublin residential property prices 22.6% lower than their February peak in 2007 and outside of Dublin, 20.1% lower than their record heights in May 2007.
Prices have recovered nationally from their deep tumble in 2013 by 83.8% and Dublin residential prices have risen 91.8% from their February 2012 low.
Speaking about the latest property price data, Joey Sheahan, Head of Credit from MyMortgages.ie said the property market in Ireland remains "robust" and that yesterday's budget measures will stimulate further activity.
"The extension of the HTB (Help to Buy) scheme was necessary and will generate even more activity in the market in the months and year ahead.
"The announcement also brings a degree of certainty that was lacking the market – would be First Time Buyers (FTBs) were unsure as to whether they would or could make the December deadline," Mr Sheahan said.
The price increase in the south-west speaks to the resilience of the Cork property market according to Mr Sheahan and that demand is persistent in the region.
"Cork’s market has possibly shown more resilience than other areas of the country.
"Differences in the average price of property can of course be seen across the city and county – €344,999 in Kinsale, €317,500 Carrigaline, €290,000 in Cork Southside, €239,750 in Cork Northside.
"But we are seeing demand in all areas of the city and county – mortgage applications and subsequent approvals are strong across the board," said Mr Sheahan.
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