Dublin house prices up for first time in six years
House prices in Dublin rose in the last quarter showing signs of stability in the market, two new reports have found.
But the latest property price surveys showed that while activity is picking up in the capital, the cost of the average house has continued to drop on a national basis.
Caroline Kelleher, author of a report from MyHome, said while there are some signs of improvement, the property market will not recover until the wider economy does.
“Uncertainties about property tax, water charges, an austere budget and external factors affecting the wider economy will continue to weigh heavily on any potential recovery,” said Ms Kelleher.
“The sooner the uncertainties are removed over areas within our own control the sooner the property market will be able to function again.”
The latest house price survey from Daft had similar findings.
It found average asking prices in south Co Dublin rose by 2.8% in the third quarter.
But prices elsewhere fell – and in some cases dramatically.
Waterford city saw a sharp drop of 9.3% from June to September, while asking prices in Munster took their hardest hit since the start of the property crash with prices falling 7% over the quarter.
Daft economist Ronan Lyons said the varying conditions across the country should encourage the Government to stop thinking of one national property market.
“Conditions vary dramatically between Dublin, where the number of properties for sale is at its lowest point since early 2007, and large parts of Munster and Connacht, where stock for sale remains very high,” he said.
According to Daft, the national average asking price now stands at 167,000 euro - down 54% from the peak in 2007.
And while prices in Dublin picked up by 2.8% in quarter three, they were still 2% lower than this time last year.
Meanwhile, MyHome found Dublin prices rose by 1.6% in the three months from June to September – compared with a 4.7% fall in the previous quarter.
Ms Kelleher added experts could see several signs of stabilisation in key segments of the market.
“For example, nationally the asking price for a three-bed semi detached house has remained constant for the past three quarters, while two-bed apartment prices also seem to have stabilised,” she said.
“In addition to the figures outlined above, consumer confidence and affordability continue to improve while we have also seen a modest increase in mortgage draw-downs. These are all positives.”