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Residential property prices in Ireland increased by 16.3% year on year in December 2014, up marginally on the 16.2% recorded in November, the latest index data shows. But it is a substantial increase on the 6.4% recorded in the 12 months to December 2013, according to the figures from the Central Statistics Office. So, at a national level the 0.4% rise in the month of December compares with an increase of 0.5% recorded in November and an increase of 0.3% recorded in December of last year. A breakdown of the data shows that in Dublin residential property prices rose by 0.2% in December and were 22.3% higher than a year ago. Also, Dublin house prices rose by 0.3% in the month and were 22.5% higher compared to a year earlier. Dublin apartment prices were 21% higher when compared with the same month of 2013. However, a CSA spokesman pointed out it should be noted that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series. The price of residential properties in the rest of Ireland rose by 0.7% in December compared with a rise of 0.1% in December of last year and prices were 10.2% higher than in December 2013. House prices in Dublin are still 35.6% lower than at their highest level in early2007 while apartments in Dublin are 44.9% lower than they were in February 2007. Residential property prices in Dublin are 37.7% lower than at their highest level in February 2007 and the price of residential properties in the rest of Ireland is 41.4% lower than their highest level in September 2007. Overall, the national index is 37.6% lower than its highest level in 2007 but there are still concerns about the annual rate of price growth and Ireland’s Central Bank is poised to introduce new mortgage rules, mainly aimed at raising deposit levels to try to ward off a bubble. According to the Society of Chartered Surveyors Ireland (SCSI), the rebound will moderate substantially this year as tighter lending rules exert a downward pressure on prices. It’s annual review and outlook report for 2015, which is based on a nationwide survey of members, predicts that the pace of property price inflation would moderate to 5% to 10% this year. However, the SCSI believes that a threshold of 20% deposits for residential buyers seeking a mortgage is too restrictive and members favour a 10% to 15% level. The SCSI report also suggests that property values rose by 14% nationally in 2014 and by 19.5% in Dublin. It also shows that rents increased by an average of 11% nationally and are now just 5% to 10% off peak levels in some prime Dublin locations. The society report also shows a 33% increase in housing completions last year, but said that this figure is still less than half of what is required annually. ‘The lack of supply of family type homes in the… Continue reading →
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