House price inflation surged to another pandemic high of 14 per cent in November as demand continues to outstrip supply.
This was the strongest level of growth seen in the market in over 6½ years and comes amid a strong pick-up in inflation generally.
The latest data from the Central Statistics Office (CSO) show property prices increased by 14 per cent across the State in the year to November, up from an annual rate of 13.3 per cent the previous month and an increase of just 0.4 per cent in November 2020.
In Dublin, where supply pressures are most intense, headline price inflation was 12.8 per cent while outside the capital the annual price increase was measured at 15 per cent.
Many had predicted property values would fall as a result of the pandemic but a number of factors, including the ongoing shortfall in supply, increased savings and remote working, have led to an acceleration in prices.
In money terms, the average price paid for a home in the 12 months to November was €323,950. The average price in Dublin (€501,443) was the highest in any region or county.
Dún Laoghaire-Rathdown had the highest mean price in the Dublin region at €693,636, while south Dublin had the lowest in Dublin at €402,337.
Outside Dublin, the mideast was the most expensive region, with a mean price of €337,414; Wicklow was the most expensive county, with a mean price of €433,575.
The Border region was the least expensive region in the year to November 2021, with a mean price of €164,713.
More transactions
The CSO also reported an increased number of transactions, which rose by 5.3 per cent 4,566 in November, valued at €1.6 billion.
Overall, prices of new dwellings have risen by 77 per cent from their trough in the middle of 2013, the agency said, while prices of existing dwellings are now 105.8 per cent higher than at their lowest in 2012.
Property prices across the Republic have increased by 111.7 per cent from their trough in early 2013 while in Dublin prices have risen 117.9 per cent from their February 2012 low.
“It is generally anticipated that property price increases will be more muted in 2022 than they have been in recent years, not least because, hopefully, this year the construction industry will not experience the same Covid-related disruption as it has for the last two years,” said Trevor Grant, chairman of the Association of Irish Mortgage Advisors.
“That said, property prices, the CBI [Central Bank of Ireland] lending rules, and the buying-power of commercial entities, State agencies and cash buyers are factors that are already making the Irish property market a difficult place to be for those looking to purchase their first home this year,” he said.
“Growth in house prices is not bad news for everyone however, obviously sellers looking to trade up or down can command higher prices now,” Mr Grant said.
