Property prices continue to soar in Ireland

Property prices have increased by 9.6% year on year in Ireland at a national level, up from 9.4% recorded in February 2017 and the 5.5% recorded in the 12 months to March 2016.

The current price growth is being led by the market outside of Dublin, the latest figures from the Central Statistical Office show. Prices were up 8.2% year on year in the capital city but up 11.8% in the rest of Ireland.

A breakdown of the figures show that house prices in Dublin increased 8% and apartment prices were up by 9.6% in the same period. The highest house price growth was in Dublin City at 10.7% and the lowest growth was in Fingal with house prices rising just 2.2%.

In the rest of the country house prices were up 11.3% and apartment prices up 16.4% in the year to March. The strongest growth of 15.5% was in the South East and the lowest at 9.2% was in the Mid Region.

Overall, the national index is now 31.5% lower than its highest level in 2007. Dublin residential property prices are 31.5% lower than their February 2007 peak, while residential property prices in the rest of Ireland are 36.4% lower than their May 2007 peak.

From the trough in early 2013, prices nationally have increased by 50.4%. In the same period, Dublin residential property prices have increased 67.6% whilst residential property prices in the rest of Ireland are 46.3% higher.

In the 12 months to March, the average market price paid was €246,948. The highest prices are in Dublin with an average of €400,489. Of the four administrative areas of Dublin, Dún Laoghaire-Rathdown was the most expensive with an average price of €561,203 and South Dublin was the least expensive with an average price of €314,932.

After Dublin, the next most expensive region was the Mid East, where the average price paid was €246,556 with the most expensive in County Wicklow at €316,269, making it the second most expensive county after Dublin.

The least expensive area was the Border region with an average price of €116,226. However, the least expensive county was County Longford in the Midland region with an average price of €87,989.

According to Dermot O’Leary, chief economist at Goodbody Stockbrokers, heightened demand is likely to keep price inflation in Ireland at a high level for the foreseeable future.

Alan McQuaid, an economist at Merrion Private, believes that even with concerns about the impact Brexit might have on the Irish economy, prices are set to remain high due to the easing of mortgage lending restrictions and tax incentives for first time buyers, said .

‘The real question is whether we need this type of incentive at all, with politicians seemingly not learning their lesson from the property crash and financial crisis, he added.

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