Property prices increased nationally in Ireland by 10.7% in the year to February 2017, up from the 8.1% recorded in the 12 months to January and the 5.4% up to the same month in 2016, the latest official data shows.
Whereas is has been Dublin leading the property market recovery, it is homes outside of the capital city that are now leading the price growth, according to the figures published by the Central Statistics Office (CSO).
In Dublin prices increased by 8.3% year on year with house prices up 8.1% and apartment prices up 9.1%. The highest house price growth was in Dublin city at 9.2% and the lowest growth was in Fingal with house prices rising just 3.7%.
In the rest of Ireland prices increased by 13.2% higher year on year with house prices up by 13.1% and apartments up by 13.9%. The West region showed the greatest price growth with house prices increasing by 19.8% with the lowest growth recorded in the Mid-East at 9.3%.
But prices are still well below their peaks. Overall, the national index is 30.7% lower than its highest level in 2007. Dublin prices are 31.3% lower than their February 2007 peak, while residential property prices in the rest of Ireland are 35.7% lower than their May 2007 peak.
From the trough in early 2013, prices nationally have increased by 52.1%. In the same period, Dublin prices have increased 67.9% whilst residential property prices in the rest of Ireland are 47.9% higher.
In the 12 months to February, the average market price paid by households for a home was €245,165. The highest average price was in Dublin at €398,319. Of the four administrative areas of Dublin the most expensive was Dún Laoghaire-Rathdown with an average price of €555,346. South Dublin was the least expensive with an average price of €313,506.
After Dublin, the next most expensive region was the Mid-East at €244,271. Within the Mid-East, County Wicklow was most expensive, with an average price of €313,023, making it the second most expensive county after Dublin.
The least expensive area was the Border region with an average price of €115,207. However, the least expensive county was County Longford in the Midland region with an average price of €87,584.
The Institute of Professional Auctioneers and Valuers believes that prices will continue to rise until supply starts to increase. ‘There are only a few large operators building residential in Dublin city. This lack of competition is fuelling price growth and also dictating a tendency to build in areas that can command higher prices,’ said chief executive Pat Davitt.
According to Davy Stockbrokers the loosening of the Central Bank mortgage lending rules and the Help to Buy scheme have added impetus to Irish house price growth.
