Property price inflation falls to less than 6% in Dublin
Latest official barometer suggests market may be cooling as supply of new homes picks up
The mid-west region recorded the greatest price growth, with house prices increasing by 21 per cent year on year. The Border region showed the least price growth, with prices increasing by 5.8 per cent. Photograph: Chris Ison/PA Wire
Property price inflation has fallen to less than 6 per cent in Dublin, figures from the Central Statistics Office (CSO) show.
This was the lowest level of price growth recorded in 18 months and suggests the gradual pick-up in housing supply may be cooling the market.
Nationally prices rose by 8.2 per cent in the 12 months to September, down from 8.9 per cent the previous month and 12 per cent a year ago, according to the latest figures.
The mid-west region recorded the greatest price growth, with house prices increasing by 21 per cent year on year. The Border region showed the least price growth, with prices increasing by 5.8 per cent.
In Dublin, Dún Laoghaire-Rathdown exhibited the greatest level of price growth at 8.3 per cent while south Dublin recorded the lowest with prices rising by just 4.2 per cent.
The figures show the median price paid for a residential property in the current market was €242,000. Dublin was the region with the highest median price (€364,998), while Dún Laoghaire-Rathdown had the highest median price (€532,000) of the four Dublin administrative areas.
Outside Dublin, the region with the highest median price was the mid-east (€267,499) while the Border was the region with the lowest median price for a dwelling (€120,000).
The figures, which also break down prices by Eircode, show the most expensive Eircode area to purchase a house was D04 “Dublin 4”, with a mean price of €797,181.
The second most expensive Eircode area was D06 “Dublin 6”, where the mean price was €732,974. The least expensive Eircode area within Dublin was D10 “Dublin 10”, with a mean price of €226,465.
Since early 2013, prices across the Republic have increased by 82.8 per cent, while Dublin prices are up by 96.1 per cent from their February 2012 low.
Prices outside the capital have been slower to recover but are still 77.8 per cent higher than their trough in May 2013.
IPAV, the Institute of Professional Auctioneers and Valuers, said the continuing tapering in the level of house price growth marked a “price correction” in the market in the most expensive areas.
Chief executive Pat Davitt said despite today’s CSO figures it is still the case that properties across many areas of the country are being sold for less than the price of constructing them.
“That is part of the reason why last week’s CSO new dwellings data for Quarter 3, while going in the right direction, is still anaemic, likely to be below 20,000 for the full year,” he said.
Separately the Society of Chartered Surveyors Ireland (SCSI) on Wednesday released its latest “Guide to House Rebuilding Costs” which average building costs have increased by 5.5 per cent in the past 12 months.
The guide, which is used by homeowners to calculate the rebuilding costs of their home for insurance purposes, suggested the cost of rebuilding a three-bed semi in Dublin, the most expensive area, is €227,000, while the cost of rebuilding a similar house in the northwest, the cheapest area, is €154,000, a difference of €73,000. SCSI member Mark Bourke said the rise in costs is mainly associated with increased activity within the sector.
“The construction sector is experiencing high demand and this increase in activity is having an inflationary effect on prices,” he said.