Residential property prices up 10.7 per cent in year to June

Residential property prices increased by 10.7 per cent nationally in the year to June, according to new figures from the Central Statistics Office.

The figures show prices nationally rose by 0.1 per cent last month and are now 12.5 per cent higher than a year ago.

In Dublin, where housing shortages are most acute, prices fell by 0.4 per cent in June, but are still 11.1 per cent higher than in June 2014.

Dublin house prices fell by 0.3 per cent last month, while Dublin apartment prices declined by 0.4 per cent.

Residential property prices nationally are still 37.4 per cent lower than their peak level in 2007. Dublin house prices are 36.6 per cent lower than their peak, while Dublin apartment prices are 42.2 per cent lower than their peak.

Savills director of research John McCartney said the figures confirm the housing market in Dublin has cooled “significantly”.

He said the slowdown was probably inevitable given the very rapid price growth seen between April and October 2014, but it also reflects the impact of tighter mortgage lending rules which have been in place since February.

Looking further ahead, he said the detailed demographic data show that Dublin’s population has picked up strongly as people follow the jobs.

“Given sluggish house building, this will keep upward pressure on prices in the long run. However, given affordability constraints, cash funded investors rather than owner-occupiers may move to the forefront in the next phase of the market.”