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Ireland Home Prices Slow, Due to New Lending Rules

Ireland Home Prices Slow, Due to New Lending Rules

Residential News » Dublin Edition | By WPJ Staff | July 6, 2015 10:21 AM ET



According to a new Ireland House Price report by Daft.ie, for the second quarter in a row, growth in house prices in Dublin was significantly slower than elsewhere in the country.

The average increase in Dublin between March and June was 0.6%. In Cork, prices rose by 4.4%, while in Galway they climbed by 3.8%. Limerick saw a 5.1% increase in prices and in Waterford they grew by 3.4% between March and June. Outside the major cities prices were up 2.8% during the same period.

For the country as a whole, the average asking price for a house in Ireland grew by 1.9% in the second quarter of 2015. This means that in all but one of the last seven quarters, the average price has risen nationwide, although the pace of growth has slowed from an average of 5% to less than 2%. The average price nationwide is now €202,000, compared to a low of €164,000 in mid-2013 and a peak of €370,000 in 2007.

Commenting on the figures, author of the Daft.ie Report Ronan Lyons said: "The second quarter of 2015 saw the last of those buying under the old mortgage rules and already the Central Bank regulations about borrowing are having a clear impact not only on overall house price growth but also on the spread of house prices. In each of the five most expensive markets in the country - Dublin 4, Dublin 6, Dublin 6W, Dublin 14 and South County Dublin - average prices currently are more or less unchanged from September 2014, when the Central Bank announced it would be capping mortgages.

"On the other hand, prices in Dublin's commuter counties have risen by more than 10% in the same nine-month period. A reshuffling of demand from Dublin to elsewhere in the country may help general economic activity outside the capital. Ultimately, however, it does nothing to address the growing supply shortages faced by Dublin's growing population."

Year-on-year change in asking prices - major cities, Q2 2015

  • Dublin City Centre:  €249,337 - up 12.3%
  • Cork City: €210,966 - up 18.9%
  • Galway City: €207,697 - up 17.2%
  • Limerick City: €133,593 - up 11.4%
  • Waterford City: €118,234 - up 9.3%
 




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