Dublin property prices fall again in September – CSO

November 17, 2023

Residential property prices rose nationally in September, compared to the same month last year, by 1.4%.

This compares to an annual rate of 1.1% in August, the latest figures from the Central Statistics Office show.

The rate of price increases outside Dublin rose to an annual rate of 4%, compared to 3.4% in August.

However, prices in Dublin continued to fall at an annual rate of 1.9%, compared to 1.8% in August.

Back in September 2022, the annual rate of residential property price increases was 10.7%.

Within Dublin, the price of houses was down 2.4% while the price of apartments was up 0.7% on an annual basis.

Dublin City is seeing the sharpest decline in house prices with the annual rate declining by 4%, today’s CSO figures show.

Outside Dublin, house prices are up 3.9% while apartments are up 4.5%. The South West is the area where prices are still rising fastest, with the annual rate of house prices up by 5.4%.

Dublin prices are 7.5% lower than their February 2007 peak while prices outside Dublin are 5.1% higher than their May 2007 peak.

Increases in the price of new properties moderated slightly in the third quarter compared to the second quarter.

On an annual basis they are up 10.2% compared to the third quarter in 2022. By contrast, the prices of existing properties in the third quarter were 1% lower compared to the third quarter in 2022.

The volume of properties transacted also slowed in September, the CSO noted.

Overall, the number of properties sold was 7.2% lower than in September last year while it was 8.3% lower than in August.

A total of 3,589 existing properties were sold, a decrease of 4.7% on last year, while 666 new properties were sold, down 18.6% on September last year.

In the year to September, 34.5% of properties were purchased by first-time buyers while 53.6% were bought by movers.

Investors, housing bodies and local authorities accounted for 11.9% of properties bought.

The median, or mid-point, price of properties nationwide was €320,000.

The highest median price remains Dún Laoghaire Rathdown at €635,000 while the lowest remains Longford at €160,000.

Commenting on today’s figures, Trevor Grant, Chairperson of the Association of Irish Mortgage Advisors (AIMA), said that despite higher mortgage interest rates and the cost-of-living crisis, the demand for housing is strong.

But Mr Grant said the ongoing under-supply still stands as a barrier for many homebuyers.

“This is especially concerning for buyers who have been looking in areas outside of Dublin, as the higher prices in Dublin have already made it difficult for them to afford homes within the capital with prices outside Dublin increasing by 4%,” he noted.

He also said the heightened level of activity in the mortgage market has the potential to push the rate of house price growth up again.

“It is crucial therefore for the Government to continue to meet its housing supply targets – otherwise, there is a risk that house prices may start to spiral upwards,” he stated.

“But in almost all cases is still cheaper to buy than to rent over the long-term,” he added.

Meanwhile, Pat Davitt, Chief Executive of IPAV, the Institute of Professional Auctioneers & Valuers said many aspiring buyers have found themselves already excluded from the market and chasing a moving target with increased interest rates.

“If we succeed in improving housing supply the market will continue to stabilise and it will create more momentum in the second-hand market, as well as taking pressure off the rental market,” he said.

“While there are some positive signs, the challenge remains huge with planning issues being amongst the most arduous for developers,” he added.

He said today’s CSO figures continue to mirror IPAV’s own Residential Property Price Barometer of prices achieved by agents.

It found an overall increase of 2.05% in the first six months of 2023, compared with 2.44% in the previous six months.

He pointed out that in the lowest priced county in today’s CSO report, Co Longford, prices are still up to 25% behind where they were in 2006.

“We would see a lot more of this happening in the market over the coming months,” he said.

Article Source – Dublin property prices fall again in September – CSO – RTE.ie

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