The average price of a second-hand house in Dublin increased by around 7 per cent in the second quarter of 1999, a report on the Dublin commercial and residential markets has found.
The quarterly report of the Sherry FitzGerald group reveals that the total price increase for the first six months of 1999 was 16.3 per cent. This figure suggests that house price inflation will probably exceed 25 per cent for the third successive year in Dublin, the report says.
In the early months of 1999, construction levels in Dublin rose by 15 per cent on the same period in 1998. The pattern of increasing construction is also evident in areas surrounding Dublin.
A recent study conducted by the company found that there is now approximately 2,776 hectares of residential zoned land in Dublin. This is a significant increase on the 1997 figure of 1,295 hectares but the report highlights that the lack of adequate funding required to service the existing land will reduce the ability to increase housing supply on these sites.
The report concludes that the increase in construction levels and the supply of residentially-zoned land will probably moderate the price inflation in the housing market over the next decade.
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