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House price growth slowest in Dublin in second quarter

The growth in house prices in Dublin was significantly slower than elsewhere in the country for the second quarter in a row.

The figures are in the latest House Price Report from property website Daft.ie.

The report shows that the average increase in Dublin between March and June was 0.6%, while Limerick saw a 5.1% rise.

Outside the major cities prices were up 2.8% over the same period.

For the country as a whole, the average asking price for a house in Ireland grew by 1.9% in the second quarter of 2015.

This means that in all but one of the last seven quarters, the average price has risen nationwide.

Daft.ie said the average price of a house nationwide is now €202,000, compared to a low of €164,000 in mid-2013 and a peak of €370,000 in 2007.

Author of the report Ronan Lyons said the figures show the new lending rules introduced by the Central Bank have taken effect.

Mr Lyons said Dublin is now responsible for dragging the national asking price down, instead of pushing it up, as it had been doing two or three years ago.

Speaking on RTÉ’s Morning Ireland, he said the new rules are having a cooling-off effect on house prices in Dublin, which, he said, should be a permanent affect.

He said: “There is also a potential temporary effect, in that once you introduce these rules, you reshuffle demand a little bit around the country, in particular from Dublin to the counties around it.”

He added: “The Central Bank’s aim here was really to make sure people didn’t borrow too much.

“And people were borrowing most relative to their capacity to pay back in Dublin.

“So it was clear that if they were going to have an impact anywhere, it was going to be, particularly in terms of cooling off house prices, it was going to be in Dublin.”

Article Source: http://tinyurl.com/kbwqb42


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