PROPERTY PRICE RISES have accelerated on a national level with values for October 6.1 per cent higher than the same month in 2012.
This is the fifth month in a row that prices have risen on a yearly basis but it is easily the most striking increase as it compares to price rises in September of 3.6 per cent and 2.8 per cent in August.
In the month of October prices grew by 1.8 per cent, the biggest monthly rise this year and the peak of seven consecutive months increases.
Although Dublin continues to outpace the rest of the county, the figures released today by the Central Statistics Office show that properties outside the capital are showing some early signs of turnaround.
Excluding Dublin, yearly property prices fell around the country by 0.3 per cent but this compares to much larger drops in September and August of 2.6 per cent in each case.
On a monthly basis there was a 1.5 per cent rise in property prices outside of Dublin, the largest such monthly rise in the last thee years of CSO figures.
In Dublin, residential property prices grew by 2.3 per cent in October and were 15 per cent higher than a year ago. Houses specifically rose at roughly the same rate as overall property but apartments showed a greater rise, increasing by 18 per cent.
Source: Central Statistics Office
Dublin property has now grown on a yearly basis every single month of 2013 with October’s 15 per cent rise the largest bump. Despite the trend of increases, property prices in Dublin are currently 50 per cent lower than at their highest level in early 2007.
David McNamara of Davy stockbrokers says that the market is now seeing the longest run of price rises since 2007 but warns that they are remaining cautious about the figures. “An upturn is now apparent, however, we are a little more circumspect regarding the magnitude of the appreciation in house prices,” he says.
The index covers mortgage transactions, half of all transactions, of which there have been very few this year. Just 4,051 new mortgages were drawn down in the third-quarter, a pick-up off a very low base of 3,532 in Q3 of 2012. This means extra volatility in the mortgage-based index – illustrated in an improbable 5.9 per cent monthly rise in Dublin apartment prices.
Supply constraints in Dublin are also continuing to have a significant impact he adds with “an influx of cash buyers compensating for weak mortgage lending”.
Read: The ‘Dublin differential’: Should city centre dwellers get tax breaks for living in the capital >