However, the rate of increase has slowed dramatically and, according to analysts, this signifies that Central Bank rules are beginning to slow price growth.
A study by Real Estate Alliance reveals that the rate of increase in the cost of a three-bed, semi-detached house in Dublin slowed to 0.5% in the first quarter.
The cost of the average semi in Dublin rose by just €2,000 in the first three months of the year, according to the REA’s Average House Price Index.
The rate of increase in Dublin has now slowed to 2% over the past six months, compared to an increase of 4.5% in the first three months of 2017.
REA spokesman Barry McDonald said: “What we may be seeing, after the rapid increases of recent years, are the Central Bank mortgage lending restrictions imposing an upper level on purchasing power for some buyers. The Dublin market has become quite price-sensitive.”
Average cost of three-bed semi now €229,111
The average price of a three-bed semi-detached house now stands at €229,111 nationwide, according to a new report.
This marks a rise of 9.1% over the past 12 months compared to 11.3% in 2017 and an increase of 1.5% on the figure of €225,806 recorded in the last quarter of 2017.
Although the rate of growth has slowed, the cost of an average home in Dublin is now €440,000 — exactly twice the Central Bank’s €220,000 mortgage deposit threshold.
The cost of the average semi in Dublin rose by just €2,000 in the first three months of the year, according to the Real Estate Alliance (REA) Average House Price Index.
The rate of increase in Dublin has slowed to 2% over the past six months, compared to an increase of 4.5% in the first three months of 2017.
Commenting on the figures, REA spokesman Barry McDonald said: “What we may be seeing, after the rapid increases of recent years, are the Central Bank mortgage lending restrictions imposing an upper level on purchasing power for some buyers.
The Dublin market has become quite price-sensitive, even though we are seeing healthy demand and good liquidity with plenty of mortgage lending.
The country’s major cities outside Dublin recorded a combined Q1 rise of 2.1%, with an average three-bed semi costing €243,750.
Limerick city saw a 4.2% rise, with prices increasing from €192,000 to €200,000 since December.
Average first quarter selling prices were also 2.9% higher in Galway city, where the typical semi-detached house now fetches €265,000 and agents REA McGreal Burke are reporting strong demand, with 10 buyers for every property on the market.
Cork City registered a €5,000 (1.6%) increase in the first three months to bring levels to €315,000 while prices remained static in Waterford city at €195,000.
Counties within commuting distance of Dublin continued their recent steady growth with a 1.4% increase in the first three months of 2018.
The average house in those counties is now selling for €235,900, a rise of €3,000.
In commuter counties such as Kildare, the biggest percentage rises are coming in towns such as Newbridge [2.3%] which recorded double the increase of Naas [1.1%] because, at €225,000, property is nearer to the Central Bank’s deposit threshold, said Mr McDonald.
Meanwhile, the number of house sales in Dublin rose by 16% last year, up from 15,058 to 17,491. The total value of transactions for the year was also up, rising by 21% to €7.4bn, according to a new study carried out by MyHome.ie based on the analysis of the Property Price Register
The number of house sales rose in all but four of Dublin’s 22 postal code districts. Dublin 15 was the postal district with the highest number of sales during the year at 1,640. It was followed by Dublin 18 on 1,029 with Dublin 24 in third place on 939.
The postcode which recorded the biggest increase was Dublin 17, where sales rose 88%. Sales in Dublin 24 were up 71% and sales in Dublin 13 rose by 55%.
The four postcodes which recorded falls were Dublin 20, with sales down 47%; Dublin 4, down 28%; Dublin 9, a drop of 16%, and Dublin 7, down 3%.
Sales in Co Dublin rose from 3,900 to 4,669, an increase of almost 20%.