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Double digit price rises continue
By Ruth Baily
Property prices rose by 14.9% nationally in the year to August continuing the now familiar double digit growth. These rises were mainly driven by growth in Dublin where residential property prices rose by 2.3% in the month of August. Overall prices in Dublin are up 25.1% in the last 12 months.
These rises are being driven by a supply shortage which is particular acute in the greater Dublin area. Houses in Dublin increased by 24.7% in the past year with apartments up 32.6% – however it should be noted that fewer apartments have come to the market during this time.
Nationally prices were up 0.8% in August and overall by 5.6% in the 12 months from August 2013.
While these figures will be good news for home owners, particularly those who will have been lifted out of negative equity in the past 12 months, for those hoping buy a home they pose a different problem. We already have people queuing for new developments before they are launched and anecdotal stories of one in one out policies at viewings of second hand homes. If you are in the market for a new home, increasing prices are not good news.
We are currently not building enough homes to keep up with market demand. Last year saw 8,301 homes completed throughout the country with 1,360 of these in Dublin. 2014 will see approximately 10,000 new homes with 2,000 in Dublin, this is a small improvement but no where near what is needed.
Until the supply shortage, particularly in Dublin, is meaningfully tackled we can expect to see double digit price rises continue.