House prices rise 12.2% in 2003

The price of homes in Ireland rose by more than 12.2% during the first 11 months of this year, according to new figures issued today.

But monthly returns from the ESRI and permanent tsb also highlighted signs of a slowdown in the property market during 2004 – particularly in Dublin.

The statistics were interpreted in Dublin as indicating a “soft landing” for Ireland’s one-time raging housing boom, rather than the dramatic crash claimed by some commentators to be imminent.

House prices went up nationally in Ireland by 12.2% in the period between January and November, compared with 11.9% over the same period during 2002.

The average price paid for a house nationwide in November was €231,109 – more than three times the price in March 1996, when the index started.

The equivalent price in November 2002 was €203,407.

In Dublin, however, house price growth fell back to 0.5% last month, compared with 1.4% outside the city. In October, the comparative figures were 1.8% and 1.4%.

The average house price in Dublin in November was €303,400.

Permanent tsb executive Niall O’Grady said house price growth for the year would come in at around 13%, higher than most commentators had predicted at the start of 2003.

But he also reported that, if the current trend continued, the rise in 2004 was likely to be around 6-8%, pointing to “clear evidence of moderation”.