Signs that the residential property market in Ireland is stabilising

Residential property prices in Ireland fell by 4.5% in the year to the end of December but the rate of decline is slowing, the latest figures from the Central Statistics Office show.

This compares with an annual rate of decline of 5.7% in November and a decline of 16.7% recorded in the 12 months to December 2011.

On a monthly basis prices were down just 0.5% in the month of December. This compares with an increase of 1.1% recorded in November and a decline of 1.7% inDecember of last year.

In Dublin residential property prices fell by 1.3% in December and were 2.5% lower than a year ago. Dublin house prices fell by 1.7% in the month and were also 1.7% lower compared to a year earlier. Dublin apartment prices were 10.9% lower when compared with the same month of 2011.

The price of residential properties in the rest of Ireland were unchanged in December compared with a decline of 1.1% in December last year. Prices were 6.1% lower than in December 2011.
House prices in Dublin are 54% lower than at their highest level in early 2007 while apartments in the city are 62% lower than they were in February 2007. Overall residential property prices in Dublin are 56% lower than at their highest level in February 2007.

In the rest of Ireland prices are 47% lower and the national index is 50% lower than its highest level in 2007.

As the property market starts to stabilise the outlook for 2013 is more positive and estate agents report that more vendors are lowering their prices which is set to attract more buyers back to the market.

Savills reports that demand is high especially for house priced just under €1 million. Many vendors are pricing just under that figure to attract buyers as they won’t have to pay the extra property tax that the higher price bracket brings.