City house prices up 63% since 2013

by Gazette Reporter

LAST year was one of two halves for Dublin’s housing market.

Easing of mortgage rules for first-time buyers by the Central Bank of Ireland (CBI) contributed to an increase in prices in the first half of the year, and a levelling-off in the second, according to Myhome.ie, who released their analysis for the end of 2017 this week.

Overall, asking prices rose 12% in 2017, with the average now at €360,000 in the capital, according to Daft.ie who also released their House Price Report for the fourth quarter of 2017 this week.

Since their lowest point in 2013, the city’s prices have increased by 63%.

At the start of 2017, the CBI relaxed its rules about first-time buyer minimum deposits, dropping from 20% for mortgage credit above €220,000 to ten per cent.

South County Dublin remains the most expensive place to buy property in the country, with an average asking price of €564,000, according to Daft.ie.

South Dublin city is second, with an average price of €395,000, and north Dublin city third at €329,000.

The city centre saw a price increase of 20.8% in the year from the end of 2016, and the county in general saw an increase of between 11.1 and 11.7%, according to both websites.

Outside the capital, County Wicklow is the most expensive, with an average price of €316,000, while County Leitrim is the least, at €120,000 on average.

Both reports highlight the ongoing housing shortage in the country, with a further 9% drop nationally in the number of homes on the market at the end of the year in comparison to 2016.

Supply of homes for sale has continued to fall for the past 100 months, according to Daft.ie.

However, new measures relating to apartment building, implemented on December 18, 2017, will lead to an increase in building, MyHome.ie believe.

Developments will now be able to include a higher proportion of one-bed units, up to 50% in urban areas, and requirements for car parking have been reduced where public transport is available.

“The overall picture of the market remains one of strong demand, but very tight supply”, said Ronan Lyons, author of the Daft.ie report and economist at Trinity College Dublin.

“As we enter 2018, increasing supply, especially of apartments in Ireland’s major cities – must become the key success metric for policy makers when it comes to the housing market.”

Demand continues to increase, with over 1,000 property searches taking place every minute on Daft.ie, according to the website.

Asking prices in Dublin dipped 0.4 per cent in December 2017, but both Daft.ie and MyHome.ie say this is normal for end-of-year figures and expect sales to pick up in the spring.

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