Monday, January 21 15:46:32
For the first time since 2006 the annual rate of change in residential property prices rose in Dublin last year registering a 2.2pc increase for second hand homes, according to Douglas Newman Good today.
This is a significant result and appears to signal that property prices have now stabilised in the capital, the property seller's chief executive, Keith Lowe, said.
The price rises occurred in the last two quarters of last year and exceeded the level of price falls experienced in the first six months. These two quarter increases have been the first experienced in Dublin since the peak in 2006 and were stronger than expected at 3.1pc and 3pc respectively.
However overall property prices remain 63.9pc lower than their peak and in my opinion have now over-corrected.
An article published by two Central Bank of Ireland economists last year stated that they believe that property prices have over-corrected and the ESRI also commented that they consider that house prices could rise significantly when the market recovers.
Since the publication of the Property Price Register in 2012 it is now possible to accurately measure the level of transactions in the market at any one time or any given area and it can be utilised as a strong barometer of the fitness of the residential sector, said Mr Lowe.
Last year there were 7,600 transactions in the capital and 21,725 in the rest of the country. This is up 27pc and 16pc respectively on 2011.
Over E4.3 billion was spent on property sales during the year with the average price paid of E201,771 on a nationwide basis.
However DNG said the building industry in Ireland shows increased signs of continued slowdown with the overall figure for registered completed buildings last year expected to just exceed 8,000 units in total compared to 10,480 for 2011.