It is substantially up on the increase of 1.2% recorded in the 12 months to June 2013 and up 2.9% month on month, up from the 2.3% recorded in May and an increase of 1.2% recorded in June of last year.
In Dublin residential property prices grew by 3.3% in June and were 23.9% higher than a year ago, the data also shows but experts suggest that a supply shortage is behind the market growth.
Dublin house prices rose by 3.1% in the month and were 24.4% higher compared to a year earlier while apartment prices were 18.2% higher when compared with the same month of 2013.
However, a CSO spokesman said that it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series.
The price of residential properties in the rest of Ireland rose by 2.3% in June compared with an increase of 0.7% in June of last year and prices were 3.4% higher than in June 2013.
A breakdown of the figures show that house prices in Dublin are 42.7% lower than at their highest level in early 2007 while apartments in Dublin are 50.5% lower than they were in February 2007.
Residential property prices in Dublin are 44.5% lower than at their highest level in February 2007 while in the Rest of Ireland they are 45.8% lower than their highest level in September 2007. Overall, the national index is 43.4% lower than its highest level in 2007.
Meanwhile, figures from estate agents, Douglas Newman Goode (DNG,) suggest that there has been a 5.9% increase in Dublin house prices since the end of April. It says that house prices in the capital climbed by €20,000 since the end of March or €220 per day in the capital and found that houses with price tags of less than €250,000 grew at the fastest rate 10.9% in the second quarter of the year.
Between April 2005 and April 2006 the growth in national prices was 13.2%, up on the rate of growth to March 2006 of 12.1% and more than twice the 6.5% rise recorded in the 12 months to April 2005.
Although the rise in prices is generally welcome, experts point out that the recovery in property prices is mainly confined to the Dublin market and the price growth is due to a shortage of supply.
Indeed, the Society of Chartered Surveyors Ireland has called for the prompt implementation of the measures recommended in the government’s Construction 2020 Strategy to address the current housing supply shortage and pace of increases in property prices.
‘Average property prices have increased by almost a quarter since this time last year in Dublin and while property values still remain approximately 45% lower than in 2007, the current rate of price inflation is of significant concern and poses a challenge to levels of affordability and our economic competitiveness,’ said Conor O’Donovan, policy director of the SCSI.
‘They key issue appears to be the shortage of supply of new properties. Last year we built just 8,301 new houses when we should be building up to 25,000 per annum to meet demand. Clearly the pendulum has swung too far in Ireland and we now need a more balanced approach to building houses to meet the needs of our population and economy,’ he added.
