Double digit price rises continue in Ireland and likely to keep doing so in 2018
Property prices increased by 12.3% in Ireland in the 12 months to December 2017, up from 11.4% recorded in the previous month, the latest official index data shows.
Month on month price growth fell from 1% to 0.5% but this is likely to be due to December being a quieter month rather than signs of a slowdown although experts believe that in Dublin prices could grow less than in the rest of the country going forward.
The data published by the Central Statistics Office also shows that in Dublin prices increased by 11.6% year on year with houses up 10.8% and apartments up 14.7% in the same period. The highest house price growth was in Dublin City at 13.2% and the lowest in Dun Laoghaire-Rathdown at 9%.
Prices in the rest of Ireland increased by 13.3% with house values up 13.2% and apartments up by 15% over the period. The West region showed the greatest growth, with prices up by 16.4% and the lowest was 11% in the South East.
Overall, the national index is 22.9% lower than its highest level in 2007. Dublin prices are 24.4% lower than their February 2007 peak and prices in the rest of Ireland are 28.4% lower than their May 2007 peak.
From the trough in early 2013, prices nationally have increased by 72.1%. In Dublin they have increased 87.3% from their February 2012 low, whilst residential property prices in the rest of Ireland are 64.8% higher than the trough of May 2013.
The index also shows that the median price paid was €225,000. The highest median price was in Dublin €349,250. Of the four administrative areas in the city, Dún Laoghaire-Rathdown had the highest median price at €520,000 and Fingal had the lowest median price at €312,500.
Outside Dublin, the highest median prices were in Wicklow at €303,000 and Kildare at €270,000 while the lowest was in Longford at €85,125 and Roscommon and Leitrim shared the second lowest median price at €90,000.
According to Davy stockbrokers the small fall in month on month prices was ‘merely a seasonal effect reflecting the quiet winter period’ but a spokesman pointed out that double digit house price inflation is not sustainable over the long term when wages are growing by only 2% to 3%. The firm expects that this level growth will continue outside of Dublin during 2018.
Meanwhile, Merrion Stockbrokers also expects prices to continue to rise. ‘We see house price growth staying in positive territory on a year on year basis for the foreseeable future, with the annual rate of increase now looking like it’s set to remain in double digits for well into 2018 at least,’ it said.