Dublin house prices have gained an 8.9% average increase from Jan-end Mar 2014, that’s an average rise of almost €5,000 per month.
Dublin House Prices Rebound by Over 23% in last 12 months
• 8.9% average increase in Dublin House Prices from Jan-end Mar 2014
• House prices rise by €5,000 per month in the capital
• Entry level prices grow the most at 12.9% in the first quarter of this year
• 7th consecutive quarterly rise
• Prices still remain 50% below peak
• Over 400,000 home rented versus 200,000 in 2006
• Calls for measures to support building industry
• 36% increase on average since the market low point in early 2012
Lack of supply in the property market is continuing to drive prices with evidence of the increasing demand reflected in the 400,000 homes which are now rented versus 200,000 in 2006. Rising rents and the creation of an addition of 20,000 new households annually have all contributed to the increasing house inflation. Although residential property prices remain 50% below their peak, there has been a 36% increase on average since the market low point in early 2012.
Houses in the west of the city experienced the biggest annual increase at 30% while properties below €250,000 increased annually by 28% or 12.9% in the January to end of March period.
Commenting on the results Keith Lowe, CEO, DNG said “Property prices in the capital were always likely to rebound quickly as they fell too fast and too far. What is happening at the moment is a realignment of house prices in the capital. This is good news for anybody who purchased a house in the greater Dublin area in the last 18 months and those in negative equity. We have also noted a marked improvement in consumer sentiment coupled with a significant increase in the availability of mortgage finance. We anticipate further market recovery this year in the capital and in a number of other key urban areas outside Dublin”
Calls for Measures to Increase Supply
According to DNG, in order to increase supply, the Government should follow the UK’s lead by introducing specific measures to support the battered housing building industry. Measures such as the introduction of a new homes grant or tax credit for buyers of new houses, supporting financial institutions in the provision of much needed construction finance, reducing financial contributions (& passing on the new 2014 reduced rates retrospectively to sites with existing planning permissions), exempting Social & Affordable Housing for borderline-viable schemes and reducing density guideline where required (this is has commenced by DCC in three areas of the city) is essential.
Full copy of the report is available on www.dng.ie
About the DNG House Price Gauge
The DNG House Price Gauge has recorded the movement in second hand house prices since its inception in 1999. The price gauge is based on a large basket of houses that was sold by the agency throughout a cross section of locations and price ranges in the greater Dublin area. The properties are revalued each quarter by the individual agency offices. DNG believe this to be an excellent barometer of property price variations in the residential market in the greater Dublin area as it monitors the value of properties in all price categories and locations regardless of whether there are transactions occurring or not in those areas or price ranges.