Asking prices for houses in Dublin and around the country continued to show positive growth in quarter three according to the latest property report from Myhome.ie.
Nationally the mix adjusted average asking price increased by 1.4% while in Dublin asking prices were up 3%.
This is the sixth quarter in a row Dublin has recorded a price increase and puts the mix adjusted average asking price in the capital at €263K, an increase of €8K on Q2.
The average mix-adjusted asking price nationally now stands at €193K, an increase of 3K on Q2. On an annual basis, the mix adjusted asking price grew by 1.1%, which is the first positive year on year growth since 2007. The annual percentage change for Dublin is 9.6%
The author of the report Caroline Kelleher from DKM Economic Consultants said the figures highlighted ongoing supply issues and the widening price differential between Dublin and the rest of the country.
“The supply problem in Dublin is continuing to drive price increases. There were only 500 completions in the capital in Q1 and given that the Housing Agency has forecast a requirement of 5,700 units in Dublin alone this year it is clear the current rate of completions falls significantly short. As a result our expectation is that prices will continue to rise over the coming months.
“It is interesting to note that the difference between asking prices in Dublin and nationally has accelerated further this quarter to 36%. The figures also show that the bigger the house the bigger the price gap. This difference now is marginally higher than at the peak of the market.
“We are entering a key period for the market and this will determine whether or not decisive progress is made on the measures contained in Construction 2020” Ms Kelleher said
According to the report an analysis of a sample of transacted properties up to Q 3 taken from the property price register and matched with available data from Myhome.ie indicates even stronger price growth.
This data indicates that on an annual basis the average transaction price nationally has increased by 16.5% in the past year. In Dublin in the year to Q3 2014 the average transaction price has increased by 25%.
Angela Keegan MD of Myhome.ie said that while the findings were generally positive they underline the need for Government to address the need for new housing.
“It’s been well flagged that Capital Gains Tax is coming to an end and that is a measure we would welcome. The market is showing signs of returning to normality and we don’t want to see investors competing with first time buyers when there is already a shortage of stock in the market. The return to a normal functioning market will be a long one and as we can see from the current supply pressures in Dublin and elsewhere, will require concerted action from a range of bodies and institutions” Ms Keegan said.