Prices continue upward in Ireland with Brexit set to boost them further
Residential property prices are continuing to increase year on year in Ireland with an 11.6% rise in the 12 months to June 2017, the latest official figures show.
This come on top of an 11.1% in the year to May and an increase of 5.5% in the 12 months to June 2016, according to the data from the Central Statistics Office.
A breakdown of the figures show that prices increased by 11.1% in Dublin with houses up 11.2% and apartments up 10.6%. The highest house price growth was in South Dublin at 11.8% and the lowest in Fingal at 5.4%.
Prices in the rest of Ireland were 11.8% higher in the year to June with the biggest growth in the South East at 16.7% while the slowest growth was in the Mid-West at 8.4%. Apartment prices increased 13.4% in the same period.
Overall, the national index is 29.0% lower than its highest level in 2007 with Dublin prices 29.9% lower than their February 2007 peak, while prices in the rest of Ireland 34.6% lower than their May 2007 peak.
It means that from the trough in early 2013, prices nationally have increased by 58.4%. In the same period, Dublin residential property prices have increased 73.8% whilst residential property prices in the Rest of Ireland are 50.4% higher.
In the 12 months to June, the average market price paid was €258,544 with the highest in Dublin at €401,890. Of the four administrative areas of Dublin, Dún Laoghaire-Rathdown was the most expensive with an average price of €580,902 and South Dublin was the least expensive with an average price of €335,998.
After Dublin, the next most expensive region was the Mid-East, where the average price paid was €260,580. Within the Mid-East, County Wicklow was the most expensive with an average price of €324,024, making it the second most expensive.
The least expensive area was the Border region with an average price of €122,091. However, the least expensive County was Longford in the Midland region with an average price of €93,912.
The data also shows that in the 12 months to June, the median price paid was €210,000.
Dublin was the region with the highest median price at €330,316 with Dún Laoghaire-Rathdown at €500,000. Fingal had the lowest median price at €299,988.
Outside Dublin, the highest median prices were in Wicklow at €285,000 and Kildare at €263,250 while the lowest median prices were in Longford at €75,500 and Roscommon at €82,000.
Looking ahead, Dublin and the rest of Ireland are expected to benefit from significant overseas investment as firms begin to avoid the UK leading up to and after Brexit, with demand for homes set to increase significantly.
Economists at S&P expect Ireland to see the fastest house price growth in Europe at 8.5% for the whole of this year and 7% in 2018. ‘The resulting inflow of workers in need of housing should contribute to sustaining house price increases in Dublin,’ they said in a report.
‘Other regions, which have so far been lagging behind, will in turn benefit from a catch up effect as the economic recovery increasingly broadens out,’ it added.
Bank of America has already confirmed that it plans to make Ireland it’s European hub, while JPMorgan Chase has purchased a planned office building with space for around 1,000 employees.