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Dublin: 4 °C Monday 24 November, 2014

Rise in Dublin house prices masks fall in every other part of the country

The 2013 house price report from property website Daft.ie shows more evidence of Ireland’s two-tier housing market.

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Year-on-year change in asking prices, Q4 2013, according to Daft.ie. Click here if you’re having trouble viewing this image.

THE DOUBLE-DIGIT rise in house prices in Dublin is masking falls in every other party of the country, according to the 2013 report from the country’s largest property website.

Daft.ie’s House Price Report shows that the average national asking price is now €171,000 a rise of 0.2 per cent from the beginning of the year and the first rise over the course of a year since 2007.

This is still down from 55 per cent at the peak of the property bubble and Daft says that Dublin’s performance – with prices rising 11 per cent in the year – masks annual falls of 4 per cent in Galway, 6 per cent in Cork, 7 per cent in Waterford and 12 per cent in Limerick.

Overall, prices outside of the capital fell by 6 per cent. This is the smallest decline in give years. Asking prices in the so-called commuter belt counties changed by less than one per cent over the course of the year.

Daft spokesman Kieran Harte said that the the “tale of 2013″ was the lack of supply in sales, rental and shared accommodation in the capital.

“This lack of accommodation across all sectors has had a major influence in Dublin’s asking prices returning to 2007 percentage increases,” he said.

“The only solution is to begin planning and building new accommodation in the capital which will cater for the demand created by the creation of jobs there.”

Daft’s chief economist Ronan Lyons said that that solution to rising house prices in Dublin is to tax empty or derelict sites, a measure being considered by Dublin City Council and supported by current Lord Mayor Oisín Quinn.

“There is plenty of scope for increasing housing supply in the capital, once we as a society not only make better use of empty sites, but are also prepared to re-designate land so that it can be used more effectively and facilitate building up where it pays off,” he said.

Daft.ie is part of the Distilled Media Group. Journal Media Ltd has shareholders – Brian and Eamonn Fallon – in common with Distilled Media Group.

Read: Dublin property prices up 15 per cent as rest of country shows some positive signs

Read: Index shows first time buyers spend 17% of their net income on their new home

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