Fall in average price of Dublin houses

The average price of new and second-hand houses and apartments in Dublin fell in the first three months of this year when compared…

The average price of new and second-hand houses and apartments in Dublin fell in the first three months of this year when compared with the end of 2006, according to Department of the Environment figures for the first quarter of the year.

However, prices for new and second-hand houses in Cork have risen by as much as €19,000, while prices for the country as a whole have risen by up to €8,000.

Amid concerns about possible job losses in the construction sector, the figures also reveal that, at about 31,600, the number of residential housing units commenced in the first six months of this year fell by 22 per cent when compared to the same period in 2006.

However, the Minister of State for housing, Batt O'Keeffe, claimed the overall figures confirm the housing market is "evolving to a more balanced and sustainable growth pattern".

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According to the Government's quarterly housing statistics bulletin published today, the average second-hand house in Dublin cost €516,211 in the first three months of this year, compared to €517,865 during the last three months of 2006.

This means that the average second-hand house in Dublin is now more than €33,000 cheaper than in the third quarter of last year, when average prices appeared to peak at €549,330.

However, in the second quarter of 2006, the average second-hand house price in Dublin was broadly similar to the current figure.

The average new house in Dublin cost €417,800 in the first three months of this year, compared to €419,330 during the last three months of 2006 - and €425,925 during the previous three-month period, the new figures show.

All figures are based on houses and apartments where loans have been approved, using data supplied by mortgage-lending agencies.

Overall, the average price of a new house nationally was €320,969, up from €313,087 at the end of 2006, while the average price of a second-hand house was €379,874. This compared to €375,577 during the last quarter of 2006.

But Cork property owners saw the average price of a new house rise by almost €18,500 to €322,364. This followed a significant drop in prices in the last quarter of 2006, when they fell from €317,283 during the third quarter to €303,925. The average price of a second-hand house in Cork rose by more than €19,000 to €374,714 in the first three months of this year. Second-hand houses in Limerick rose by some €16,000 to €267,257 and in Waterford by almost €5,000 to €294,777.

However, the price of an average second-hand house in Galway appears to have bucked this upward trend, registering a fall in price by €3,000 to €340,756.

But the average price of a new house in Galway rose by more than €9,500 to €304,215, although the price of a new house in Limerick decreased by almost €8,000 to €276,361 and by some €5,000 to €285,823 in Waterford.

In the "other areas" category, the average price of a new house rose by nearly €13,000 to €293,826, while second-hand houses fell by almost €2,000 to €301,850.