House prices jump 12.2% in year to August

Property prices up 67.5 per cent since bottom of market but still 25 per cent below peak

Houses in Salthill, Galway. The West region showed the greatest price growth in the year to August, rising 15.4 per cent. Photograph: Brenda Fitzsimons

Houses in Salthill, Galway. The West region showed the greatest price growth in the year to August, rising 15.4 per cent. Photograph: Brenda Fitzsimons

 

Residential property prices in Ireland jumped by 12.2 per cent in the year to August, but are still 25 per cent lower than their highest peak in 2007, new figures published by the Central Statistics Office (CSO) show.

This compares with a 7.6 per cent rise in the 12 months to August 2016.

In Dublin, property prices were up 11.9 per cent in the year to August with house prices increasing 11.7 per cent and apartments rising 11.6 per cent.

The highest house price jump was recorded in Dublin City, up 13.4 per cent. The lowest was in Fingal, where prices were up 9 per cent.

Dublin residential prices are 25.9 per cent lower than their February 2007 peak, while residential prices outside of the capital are 30.8 per cent lower than their May 2007 high.

Residential property prices outside Dublin were 12.6 per cent higher in the year to August. The West region showed the greatest price growth, up 15.4 per cent. The Midwest region showed the least price growth, up 9.6 per cent.

From the trough in early 2013, property prices nationally have risen 67.5 per cent.

A breakdown of the figures shows residential property prices in the capital have increased 83.5 per cent from their February 2012 low, while prices outside the capital are 59.3 per cent from its lowest point in May 2013.

Merrion’s chief economist, Alan McQuaid, said he expected prices to continue to rise in the short term until the supply issue is resolved.

“We see house price growth staying in positive territory on a year-on-year basis for the foreseeable future, with the annual rate of increase now looking like it’s set to remain in double digits for the remainder of 2017 and well into 2018,” he said.