Capital resists fall in house prices

House prices in the south have plummeted while those in Dublin have remained stable but with decreased stock, according to a new report on the property market.

The www.Daft.ie House Price Report on recent trends in the residential sales market for the third quarter of this year indicates property prices outside the cities, and particularly Dublin, are falling at a greater rate than in large urban areas.

The latest survey shows:

* Having fallen faster during the period 2008- 2011, Dublin asking prices fell by less (0.5%) than prices elsewhere (4.5%) for the third quarter in a row;

* Prices in Munster outside the cities fell by 6.8% between June and September, the largest quarterly fall since the crash started;

* while the total number of properties for sale remains high, the number in Dublin on Sept 1 was 3,883, lower than the average for early 2007 (3908);

* roughly one-in-three properties are selling within three months but other properties are struggling to find a buyer.

Even though the fall in house prices in Dublin has stabilised somewhat, in the city centre prices are still 62% below peak levels.

In Munster, outside the cities, prices fell by between 5% and 7% between June and September — the fastest rate of decline seen yet.

Dr Padraic Kenna of the School of Law at NUI Galway wrote in the report: “Approximately half of all properties are now sold or sale-agreed within three months in the capital (compared to one quarter or one third elsewhere in the country)... the total stock in the capital on Aug 1, 2012, was lower than at any point since Mar 2007.”

Meanwhile, a survey from www.MyHome.ie shows house prices in Dublin have risen for the first time in six years while nationally, house prices are continuing to fall but more moderately.

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