Divergence in house prices set to continue

The great divergence in house prices around the country is likely to continue over the next year or two, with prices rising in some places, particularly Dublin, and falling elsewhere.

Mon, 01 Jul, 2013 - 01:00

Evelyn Ring

Research by Daft.ie has found that while house prices nationally fell by 4%, compared to 15% a year ago, the overall decrease was strongly influenced by house prices rising in the capital.

Across Dublin, asking prices are on average 5.3% higher than a year ago, but outside the capital prices are down by almost 9%.

According to Daft.ie’s analysis of the residential property market over the last three months, prices are down by 6% on average in Cork City, 6.6% in Galway, 10.5% in Waterford, and 1.5% in Limerick.

Outside the cities, prices have fallen by 6% in Leinster, 11% in Munster, and 12% in Connacht-Ulster over the last 12 months.

The typical asking price for a home is now 54.6% below the peak in 2007.

Daft.ie marketing director Kieran Harte said prices were still falling, but at a slower pace.

The Daft.ie report for the year’s second quarter shows asking prices for south Co Dublin rose 12.2%, the strongest year-on-year growth in the country since early 2007.

“We are seeing two different markets. Dublin seems to have levelled out and prices are increasing but they are falling in the rest of the country,” said Mr Harte.

Daft.ie economist Ronan Lyons said the underlying cause of rising prices in Dublin is lack of supply, while demand rises steadily.

“With conditions still weak in many parts of the country, it is likely that over the next 12 to 24 months, we may have to get used to the idea of prices rising ins some places, particularly in urban areas, while they fall elsewhere,” he said.

Across the country, the proportion of properties finding a buyer within four months rose from 34% in mid-2012 to 45% now. In Dublin, two thirds of properties are now sold within four months, compared to one third in Connacht-Ulster. Across Munster, 36% of properties now find a buyer within four months, compared to 25% a year ago.

Meanwhile, MyHome.ie found asking prices in Dublin had grown by 1%, the first year-on-year house price increase in six years.

Cork prices were unchanged in the last six months, but the city recorded an annual percentage fall of just 2%. The national rate of decline was 8.6%.

House prices

Year-on-year change in average house asking price — Daft.ie.

* West Dublin: €165,308 (-1.7%).

* South Dublin: €246,847 (7%).

* Cork City: €169,144 (-6%).

* Limerick City: €135,787 (-10.5%).

* Galway City: €160,573 (-6.6%).

* Waterford City: €110,776 (-8.2%).

Price divide

Three-bed semis — Myhome.ie.