Property price growth moderates to 10.4% in year to July
But house prices rocket by more than 20% in Limerick and homes in pricey Dún Laoghaire-Rathdown post the strongest growth rate in Dublin
Slowdown in price inflation is arising because “stretched affordability and the Central Bank loan-to-income rules are preventing home buyers from taking on too much leverage”, says economist Conall MacCoille. Photograph: Cathal McNaughton/Reuters
The growth in property price continued to moderate in July, as prices across the State rose by 10.4 per cent on an annual basis. That was down from 11.9 per cent in the year to June.
House prices in south Dublin are now growing at the slowest rate in the State.
According to figures from the Central Statistics Office (CSO) published on Tuesday, the median price paid by was € 240,000 in July.
In Dublin, prices were up by 7.2 per cent in the year to July. With that, house prices rose by 6.5 per cent, while apartments were 11 per cent more expensive than in July 2017.
Dún Laoghaire-Rathdown, which is also the most expensive location covered by the CSO figures, saw the fastest surge in prices in the capital in July, with prices up by 9.8 per cent. In contrast, south Dublin saw an increase of just 5.2 per cent.
The median price for Dublin as a whole was €360,000 in July, while, in Dún Laoghaire-Rathdown, it was €527,000. That compared with € 320,000 for both Fingal and south Dublin.
The latest advances means that, since early 2013, prices nationally have increased by 81.3 per cent. Dublin prices are up by 93.8 per cent from their February 2012 low and prices outside the capital are 76.9 per cent higher than their trough, which came later, in May 2013.
Price growth outside of Dublin continues to outstrip growth in Dublin, up by 13.7 per cent in the year to July. The midwest region, covering Limerick, showed the most dynamic activity, with prices up by 23.7 per cent. At the other end of the scale, prices in the Brder region were just 6 per cent ahead.
Prices continue to inch closer to their historic peaks. On a national basis, the index is 18.8 per cent lower than its highest level in 2007 while, in Dublin, they are are 21.8 per cent lower than their February 2007 peak. Across the rest of the State, prices are 23.1 per cent lower than their May 2007 peak.
The figures also show that activity is climbing, up by 5.8 per cent to 4,104 on July 2017, largely on the back of the sale of new homes. These increased by 30.4 per cent, while second home sales rose by just 1.1 per cent.
Conall MacCoille, economist with Davy Stockbrokers, says the slowdown in price inflation is arising because “ stretched affordability and the Central Bank loan-to-income rules are preventing home buyers from taking on too much leverage”.
He said that the latest figures “should help allay fears of a deeper slowdown, particularly in the capital, Dublin”, adding that he expects price inflation to slow to 8 per cent nationally by year end, and by about 5-6 per cent in Dublin.