Property prices in Dublin increase by 2.9% last month

Property prices in Dublin increase by 2.9% last month

Property prices in Dublin increased by 2.9% last month in another sign of the residential property market improving.  The increase in property prices for the entire country was .9%, with Dublin property prices propped up this figure.  This increase in property prices is based on a low number of sales which must be taken into consideration.  At least we can start to feel more confident in these reports on property prices as the new property price register provides actual sales prices for every sale in the country.

 

There is now a three or four tier property market in the country now with Dublin leading the price increases.  This may be attributed to where the jobs are available and to a shortage of supply of properties for sale.  Not many new properties have been built over the over the 4 years and existing property owners are very slow to sell unless they really have to leaving estate agents with a shortage of properties to sell.

 

If we had normal functioning lending in the market now, we could expect further price increases in the market.  With at least 40% of sales by cash purchases, without improved lending, we could see sales drop off again as we run out of cash buyers.

 

In addition the returns on commercial property have risen by 4.8% over the last 4 quarters, with Ireland outperforming the UK, although this is on the back of falling values.

 

There are still a lot of problems in the property market and various factors affecting it such as jobs, lending etc. Although everyone is cautious about calling a bottom in the market, and rightly so, it is heartening to start see good news appearing on a more frequent basis.  With property prices increased for each of the last 3 months, hopefully we should continue to see the markets improve.