The average cost of buying a home in the Republic climbed by 7.1 per cent in the 12 months to the end of April, new figures from the Central Statistics Office (CSO) show.
While the figures suggest that the recovery in the property sector is continuing, the price increases over the last 12 months are significantly lower than 12 months previously when a year-on-year rise of 15.8 per cent was reported.
Around the State, residential property prices increased by 0.3 per cent in April compared with no change in March and a climb of 0.6 per cent in April of last year.
The new figures show that after recording four successive monthly declines to the end of April, the market in Dublin has rebounded somewhat with an increase of 1.6 per cent recorded last month.
Dublin residential property prices are now 4.6 per cent higher than they were a year ago.
The price of residential properties outside Dublin fell by 0.6 per cent in April compared with an increase of 0.3 per cent in the same month last year. However, prices are still 9.5 per cent higher than they were 12 months previously.
House prices in Dublin are now 33.1 per cent lower than at their highest level in early 2007 while apartments in the capital are 41.5 per cent lower than they were at the peak of the boom.
National index
The price of residential properties in the rest of
Ireland
is 35.8 per cent lower than their highest level in September 2007.
Overall, the national index is 33.3 per cent lower than its highest level in 2007.
The managing director of Myhome.ie, Angela Keegan, said the latest statistics indicated that momentum was returning to the Dublin market as it enters the traditional busy buying season.
“On the face of it the fact property prices went up 1.6 per cent in April and house prices went up almost 2 per cent in Dublin is a surprise,” she said. “But March was quieter than usual and it looks as if a lot of people put off making decisions on property until after St Patrick’s Day and Easter. As a result the market appears to have surged ahead.”
She said the question was now if it would “carry through into the summer. Our view is that while prices increases will continue in positive territory it won’t continue at this level.”
Temporary slowdown
“This is exactly what we predicted,” said Savills’ director of research Dr John McCartney. “Price growth slowed in Dublin last year as tighter mortgage lending forced people into renting. However, this slowdown was always going to be temporary; the shift to renting has forced up rents, attracting investors who are now scrapping to buy properties and driving up prices.”
He warned that “the Dublin market may become increasingly like London, with expensive properties, many of which are owned by investors”.
