Ireland real estate market: Lowest house price inflation in 3 years
The annual rate of house price inflation in Ireland has reached its lowest level in over three years, according to the latest data from the Central Statistics Office (CSO).
The annual rate of house price inflation in Ireland has reached its lowest level in over three years, according to the latest data from the Central Statistics Office (CSO). The Residential Property Price Index indicates a 0.9% increase in prices over the 12 months leading up to August 2023.
However, while property prices outside Dublin have risen by 3.1% during this period, the capital is experiencing a sharp decline of 1.9%, marking the steepest rate of decline since 2012. These shifts in price growth can be attributed to factors such as increased borrowing costs and consecutive interest rate hikes from the European Central Bank.
Dublin Property Prices
In Dublin, house prices have fallen by 2.3% over the 12-month period, while apartment prices have experienced a slight decline of 0.2%. Fingal, a region in Dublin, witnessed the highest house price growth at 0.2%, while Dún Laoghaire-Rathdown saw the most significant decline of 3.9%. These fluctuations highlight the varying dynamics within the Dublin housing market.
Regional Price Trends
Outside of Dublin, house prices have shown resilience, rising by 3.1%, with apartment prices experiencing growth of 1.8%. The South-West region, encompassing Cork and Kerry, recorded the highest rise in house prices at 4.4%. On the other hand, the Midlands region (Laois, Longford, Offaly, Westmeath) and the West region (Galway, Mayo, Roscommon) both saw a 2.1% increase in house prices. These regional disparities indicate diverse market conditions across Ireland.
Transaction Activity
Despite the softening of price growth, the housing market continues to demonstrate robust transaction activity. In August 2023, there was an 8% increase in dwelling purchases by households at market prices compared to the same period in 2022. This suggests that while affordability may be affected by rising borrowing costs, buyers remain active in the market.
Median Price and Variation
The median price paid for a residential property in the 12 months leading up to August 2023 was €320,000. Longford recorded the lowest median price of €159,750, while Dún Laoghaire-Rathdown had the highest median price at €634,919. Among the Eircode areas, A94 'Blackrock' had the most expensive median price at €735,000, while F45 'Castlerea' had the least expensive price at €135,000.
The Irish housing market is experiencing a period of slowing growth, with Dublin property prices declining at the sharpest rate in over a decade. Factors such as increased borrowing costs and consecutive interest rate hikes have contributed to these shifts. However, house prices outside Dublin continue to rise, demonstrating resilience in the market. Despite the challenges, transaction activity remains strong, indicating ongoing demand. It will be crucial to monitor how market conditions evolve and whether Dublin's property prices stabilize or experience further declines in the coming months.
Ireland real estate market: Lowest house price inflation in 3 years
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