The latest data released yesterday by the Central Statistics Office (CSO) has confirmed that Irish house price inflation accelerated again in June. This is the fastest growth rate seen since March 2015.
The figures show that regionally, there is little difference between price growth in the capital (+11.1% yoy) and the rest of the country (+11.8% yoy). While prices outside the capital have consistently been growing in double-digit territory for the past twelve months, there has been an acceleration in price gains seen in the Dublin area in the first half of 2017 (from 5.7% yoy in January).
Goodbody Stockbrokers have today noted how yesterday’s CSO release contains information on transactions that were previously excluded. This has increased the estimates of new home transactions over recent years, but the level of transactions still remains exceptionally low. In the first half of the year, the total number of household transactions increased by 8%.
Within this, existing home transactions grew by 5%, while new home transactions increased by 30%. There is clear evidence of growth in new home transactions, but, at 8,733 over the twelve months to June, it remains well below expected demand and a small proportion of total transactions (15%).
According to Goodbody Stockbrokers, "While prices are still down 28% from their 2007 peak levels, the continued acceleration in house prices in the first half of the year will come as a concern to the Government. A full review of the Government’s Rebuilding Ireland programme is currently underway with a suggestion that the welcome supply side measures of increased density and height may stem from this review."