Property prices remain above Celtic Tiger peak despite slowdown

House prices in Dublin city have actually fallen by 1.2% in the last year, according to the CSO. File picture Colin Keegan, Collins Dublin

The rise in property prices nationwide continues to slow down, but the median cost of a home remains higher than its Celtic Tiger peak.

The Central Statistics Office’s Property Price Index for March, the last month the eviction ban was in place, found that prices increased by 3.9% in the 12 months to March 2023. The rise in house prices is now markedly slower than this time a year ago. In the year to March 2022, house prices had risen 15.1%.

However, the median price of a home in Ireland stands at €310,000, with the property price index showing home prices now 1.6% above its highest level at the peak of the property boom in April 2007.

The latest figures show a positive trend, according to property developers Quantum Group, which said a more stable market will enable increased construction of new homes.

Chief executive Miceál Sammon said: “We are confident that Ireland will experience a significant surge in development activity in the latter part of this year, as the Government's implemented supports and initiatives begin to take effect. 

"It is crucial to prioritise not only the creation of homes for purchase, but also the provision of housing for individuals in all tenure groups.” 

The rate of increase in home prices in the last year has been far higher outside the capital with house prices up 7.1% in Cork and Kerry in the past year. On the other hand, house prices in Dublin city have actually fallen by 1.2% in the last year, according to the CSO.

The national Residential Property Price Index increased by 3.9% in the 12 months to March 2023https://t.co/8vDjZKVxjV#CSOIreland #Ireland #Housing #HousingConstruction #HouseBuilding #NewDwellings #PropertyPrices #HousePrices #IrishBusiness #BusinessStatistics #BusinessNews pic.twitter.com/kxIlzdV7Dn

— Central Statistics Office Ireland (@CSOIreland) May 17, 2023

When new and second-hand homes are broken down, inflation in the cost of new homes remains significantly higher with prices of new dwellings 11.1% higher in the first quarter of 2023 than the same period last year. 

In all of March, there were 50,159 homes purchased by households at market prices. One-third of these homes were purchased by first-time buyers while 12.7% (or 6,346) were bought by non-occupiers. Over half were bought by former owner-occupiers, or existing homeowners buying a new home.

Breaking down prices by eircode, P17 Kinsale remained the most expensive place to buy in Cork with a median price of €408,500. There was almost a €100,000 difference between the T12 Cork Southside and T23 Cork Northside eircodes, with homes selling for a median price of €350,000 and €260,000 respectively.

The most expensive eircode in the country to buy was A94 Blackrock in Dublin, with a median price of €750,000. The least expensive was F35 Ballyhaunis in Mayo with a median price of €126,000.