The latest data from the Central Statistics Office (CSO) published yesterday has found that September saw an eighth consecutive monthly rise in the rate of house price inflation in Ireland, with double-digit growth continuing to be a feature across the country.
Prices nationally grew by 2.0% mom in September, with the annual rate rising to 12.8% yoy (11.8% yoy in August). Following the strong monthly growth seen in July and August, prices have risen at an annualised pace of 27% in the most recent three month period. Prices have now already risen by more in the year to date (+11.1%) than that seen in all of 2016 (+9.0%).
The figures show double-digit increases across the country – Price inflation in Dublin (12.2% yoy) and outside Dublin (13.2% yoy) is now largely consistent. There continues to be, however, an element of catch-up outside of the capital, given that the recovery started later. Relative to peak level levels, prices are 25% below peak in Dublin, but 30% below peak outside the capital.
While Ireland is a small market, huge price differences exist across the country according to Goodbody Stockbrokers. Median price is the most appropriate gauge in this regard, as averages are skewed by a small number of very high-price transactions.
In the 12 months to September, the median price paid by households was €220K. The highest median price (€510K) is in Dun Laoghaire-Rathdown (South Dublin), with the lowest being in Longford (€76K). Analysis of affordability metrics are thus highly sensitive to the region analysed.
Yesterday's figures confirm that transactions continue to grow – In the twelve months to September, there were 59K transactions (+9% yoy), the highest level since the series began in 2010. New transactions accounted for 16% of these transactions, having been trending steadily upwards since mid-2016.
Source: www.businessworld.ie