Residential property prices have fallen in Dublin for the second month in a row.
While national prices rose marginally last month, Dublin experienced a fall in June compared to May.
According to the latest figures from the Central Statistics Office, property prices fell by 0.4% in the capital in June, but were still 11.1% higher than the same month last year.
In the year to last month, residential property prices increased nationally by 10.7%. This compared with an increase of 13.8% in May and an increase of 12.5% in the 12 months to June 2014.
Residential property prices rose nationally by 0.1% in the month of June. This compares with an increase of 0.5% recorded in May and an increase of 2.9% recorded in June of last year.
Dublin house prices fell by 0.3% in June, whilst Dublin apartment prices fell by 0.4%.
Outside of the capital, residential property prices rose by 0.4% in June. Prices were up 9.7% compared with June 2014.
At national level residential property prices were 37.4% lower than their peak level in 2007. Dublin house prices were 36.6% lower than their peak, Dublin apartment prices were 42.2% lower than their peak and Dublin residential property prices overall were 38.4% lower than their highest level. Outside of Dublin, residential property prices were 40.5% lower than their highest level in 2007.
John McCartney, director of research at Savills, said the figures confirm that the housing market in Dublin has cooled significantly with prices down around 1.1% in the year to date.
“This slowdown was probably inevitable, given the very rapid price growth seen between April and October 2014, but it also reflects the impact of tighter mortgage lending rules which have been in place since February,” he said.
Looking ahead, Mr McCartney said: “Agents are reporting that there has been a definite cooling in the market. As the CSO index lags the market by three months this means the rally that has been seen in the second half of recent years is unlikely to materialise in 2015.
“Therefore, we expect price growth to be modest at best for the remainder of this year. Looking further ahead, the detailed demographic data show Dublin’s population has picked up strongly as people follow the jobs.
“Given sluggish house building, this will keep upward pressure on prices in the long run.”
Alan McQuaid, economist with Merrion Stockbrokers said a continuation of the monthly price rises seen in the second quarter over the remainder of 2015 would result in very low single digit annual increase by December.
“There was an average increase of 12.9% in house prices in 2014, up from 1.8% in 2013,” said Mr McQuaid. “Taking all factors into consideration, we are now looking for an average increase of around 8% for 2015.”
Conall Mac Coille, chief economist with Davy stockbrokers, echoed the view of Mr McCartney, saying that the catalyst for a slowdown was the introduction of the Central Bank’s lending rules in February.
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