New figures from the Central Statistics Office shows that residential property prices on a nationwide basis rose by 1.3% in September.
Residential property prices nationwide are up 8.9% in September compared to the same time last year – the slowest annual rate of increase since June 2013. The annual growth rate has now slowed for six months in a row.
Today’s figures show that Dublin residential property prices rose by 0.9% in September compared to August.
Dublin residential property prices are 6.5% higher last month than the same time last year.
Outside of Dublin, residential property prices rose by 1.6% in September on a monthly basis. Prices are up 11.4% compared with September of last year.
Breaking down the figures, the CSO said that Dublin house prices rose by 1.1% in September while Dublin apartment prices decreased by 0.4%.
Overall, residential property prices remain 34.6% lower than their peak level in 2007.
Dublin house prices are 33.7% lower than their peak, while Dublin apartment prices are 40.7% off their highs seen in 2007.
Outside of Dublin, residential property prices are 37.7% lower than their highest level in 2007.
“The relative easing of price growth is largely due to the new Central Bank deposit rules” said financial adviser, Frank Conway and founder of MoneyWhizz.org, the financial literacy initiative.
Soaring rents and a time lapse for deposits are likely to see a new surge in property buyers in the years ahead.
“Ireland’s population is surging and with rents skyrocketing, it’s only a matter of time before would-be first time buyers have the necessary deposits to proceed with purchasing their own homes” according to Conway.
“The Central Bank took the wind out of the sails of the property market with the new deposit rules but this is just a short-term situation. Eventually, more and more twenty-and-thirty-somethings will ultimately meet the deposit limits and a new cycle of buyer-crush will begin” predicts Mr. Conway.