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Residential Property Prices rise by 7.1% in the year to April

Written by Sim Pinder, on 25th May 2016. Posted in Property

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The Central Statistics Office today released the Residential Property Price Index April 2016. The Price Index shows that residential property prices have risen by 7.1% in the year to April. 

The Index is compiled using data on mortgage drawdowns provided on a monthly basis by 8 of the main Mortgage Lending Institutions.

The index is mix-adjusted to allow for the fact that different types of property are sold in different periods.

Dublin house prices up on an annual basis for forty months running but are still 33.1% lower than at their highest level in early 2007.  Apartments in Dublin are 41.5% lower than they were in February 2007.  Residential property prices in Dublin are 35.2% lower than at their highest level in February 2007.  

The price of residential properties in the Rest of Ireland is 35.8% lower than their highest level in September 2007.  Overall, the national index is 33.3% lower than its highest level in 2007.

Commenting on the figures Dr John McCartney, Director of Research at Savills said; “This is exactly what we predicted. Price growth slowed in Dublin last year as tighter mortgage lending forced people into renting.  However, this slowdown was always going to be temporary; the shift to renting has forced up rents, attracting investors who are now scrapping to buy properties and driving up prices.  As this continues the Dublin market may become increasingly like London with expensive properties, many of which are owned by investors."

“With tighter mortgage lending introduced in February 2015, many people were priced out of the Dublin market and bought properties in Wicklow, Meath and Kildare.  This drove strong price increases in those counties last year.  But this has diminished their attractiveness, and increasingly, families are weighing up the cost savings against the longer commute and choosing to stay renting until they can assemble the deposit to buy in Dublin."

 

Source: www.businessworld.ie

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