Huge jump in property prices across Dublin
House prices in Dublin have experienced a sudden surge with property prices increasing the north county and city centre rising at rates comparable to those experienced during the boom.
The last quarter has seen a sudden spike in house prices across the county with the average price for a three-bed semi-detached house averaging €260,000 in North Dublin, €355,000 in South Dublin and €373,333 in the city.
While the average price in North Dublin is significantly cheaper than elsewhere in the county, it has experienced the highest rate of increase at 2.97% in the past three months and 5% year-on-year.
Both North Dublin and the city centre are matching the 1% per month levels experienced during the boom.
The south of the capital remains an expensive place to purchase a home but prices are rising at the slowest rate in the county – by 1.4% through the quarter and by 2.9% in the year.
The common factor across the county is that most of the Dublin rises over the past year have occurred in the last quarter.
The data from the Real Estate Alliance Average House Price Index measures prices most recently achieved for three-bed semis – Ireland’s most common house type.
This data indicates that the Central Bank lending restrictions, which were introduced in January 2015, are failing to control inflation.
Property prices increase as a result of the housing shortage
Real Estate Alliance (REA) has said that the rapid property prices increase in the capital is a result of the continued housing shortage combined with a release of pent-up demand following the introduction of the Central Bank rules.
Lack of supply has added almost €8,000 to the price of a family home in areas such as Balbriggan and Skerries.
Nationally the average price of a three-bed semi-detached house – Ireland’s most common house type – has risen above €200,000 for the first time since the property crash.
The average cost for this type of home is currently €200,093 which is up 2.42% since the end of June and 6.37% on September 2015.
The largest percentage rise in the past three months has been experienced in Ireland’s lowest-priced county, Longford, where a 9.7pc (€6,000) rise takes the average to €68,000.
Donegal is the only county to experience a price decrease with an average price of €85,000, down 1.73% in that last quarter.
Counties Clare (€150,000) and Laois (€135,000) are the only counties which saw no change in the past three months.