Arthur takes a look at Ireland’s booming property market as prices continue to soar month on month.
Ireland’s house prices have risen more in the first half of 2017 than the entirety of 2016. In the year to May, house price increases were nearing 12pc, according to a recent article by Irish Times.
North Dublin has experienced some of the largest rises in property prices, which again, according the Irish Times, is due to house hunters being “priced out of the expensive South Dublin property market”, forcing them to look elsewhere.
The four most expensive areas to buy property in Ireland in 2017 are South Dublin County, South Dublin City, North Dublin City and County Wicklow, whilst County Sligo, County Roscommon, County Longford and County Leitrim make up the four cheapest areas to buy property. Average property prices range from €563,000 in the most expensive areas, to just €124,000 in the least expensive areas of Ireland.
That being said, figures show that the Western region actually outpaces Dublin’s house price growth. In a recent article by propertywire.com, which uses figures from the Central Statistical Office (CSO), it seems that price increase year on year in Dublin was 11.2pc and price increases year on year for the rest of Ireland a staggering 12.8pc.
Demand continues to overwhelm supply in Ireland, which according to a recent daft.ie report, needs around 40,000 extra homes “of all types” every year. There are concerns over whether the new housing minister, Eoghan Murphy, will be able to reduce the high costs of housing construction in Ireland; a factor which has continuously prevented supply meeting demand and contributed to the bubble effect.
Two in five Irish are worried about another housing crash according to the Sunday Independent. This is unsurprising considering the extremity of the bubble effect that consumed the Irish housing market between 2001-2012. Economist and housing specialist Ronan Lyons does not believe that there will be any significant stabilisation in Irish house prices over the coming years unless more supply is provided further away from cities.
The combination of growth and instability which consumes the Irish property market makes it an interesting one to watch. Keep track of our future blogs for any further updates.