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Irish residential property prices up 7.9% in year to January

Written by Robert McHugh, on 10th Mar 2017. Posted in Property

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Irish residential property prices were up 0.6% in January and by 7.9% on the year according to the latest Residential Property Price Index (RPPI) released today.
 
House price inflation is running at 5% in Dublin and 11% in the rest of Ireland. Price gains through the turn of the year look more buoyant than the normal seasonal lull during the winter.

Davy Stockbrokers claim this lends support to their view that the Help-to-Buy scheme and looser Central Bank lending rules have added impetus to the market. They estimate that residential transactions were up 11% in January and February. In addition, mortgage approvals of €581m in January were up 60% on last year. 

Today’s Residential Property Price Index (RPPI) shows prices up by 0.6% in January. This reverses a 0.6% decline in December so that prices are flat over the two months. This is in line with usual seasonal pattern of weak prices at the turn of the year. The RPPI is still up 7.9% on last year.
 
According to Davy Stockbrokers, "The buoyancy in the market is borne out by transactions data. Although the Property Price Register data are not yet complete, we estimate that residential transaction volumes in January and February were up 11% on last year. This is good news given that transaction volumes fell by 2.5% in calendar year 2016 due to the tightness of the market."

They added, "Strong mortgage lending numbers have also been reported. In January, the €581m of mortgage approvals was up 60% on last year. In volume terms, mortgage approvals were 47% higher. Also, the average mortgage approval for house purchase was €208,000, up 7.9% on 2016."

Source: www.businessworld.ie 
 

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