Irish residential property prices increased by 0.8% month on month (mom) in September, according to the Central Statistics Office (CSO), taking the annual rate of growth to 1.4%.
Goodbody Stockbrokers noted that this continues a trend of ongoing modest house price growth in Ireland, but the recent trend has in fact been stronger, despite the interest rate increases seen over the past twelve months.
The CSO also published the breakdown of new versus second-hand homes for the third quarter of 2023. It shows a widening divergence, with new home prices up by 10.4% year on year (yoy), while second-hand prices fell by 1% yoy. This is the largest gap in the series (going back to 2010).
Goodbody say the preference for new homes for energy efficiency, cost increases, supports for First-Time Buyers and the shortage of new homes overall are all likely to be contributing to this trend.
Supply And Demand
Housing transactions have been relatively flat in the year to date (-2% yoy). This flat trend is present both in the new and second-hand markets in the year to date.
According to Goodbody Stockbrokers, "The stability of the market in Ireland despite higher borrowing costs is reflective of the ongoing supply/demand mismatch. This is particularly true at the affordable end of the market. Our expectation is for prices to increase very modestly over the next twelve months."