House prices jump by 7%, largest increases in Dublin

ireland
House Prices Jump By 7%, Largest Increases In Dublin House Prices Jump By 7%, Largest Increases In Dublin
House prices have increased across the country despite Covid-19.
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Muireann Duffy

Irish house prices has increased by 2.2 per cent in the final three months of the year, bringing the year-on-year increase to 7.4 per cent according a report published by Daft.ie.

The annual increase represents the biggest jump in three years, with the average sale price of properties sold between October and December working out at €269,552, up from €250,766 last year.

The report notes increased prices in each of the 54 markets across the country, with the biggest inflations seen in Dublin 8, Dublin 1o, Kilkenny and Donegal, all recording over 10 per cent increases.

Other areas did not see such a sharp rise though, as Clare, Meath and central Dublin noted house prices on average rose by less than 4 per cent, while Dublin 6, the most expensive market in the country, had the smallest increase, with just 1.7 per cent.

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According to the report, the shortage in housing nationally has become more apparent, as only 15,400 houses were available for purchase at the start of this month, the lowest figures in almost 15 years.

In Dublin, the housing stock is down by 20 per cent, while in the rest of the country the stock has decreased by a third.

Sizeable increases were reported across Irish cities, the biggest being record in Limerick, jumping 9.6 per cent since last year, with the average house now costing €220,061.

Galway City was next up, with an increase of 8.6 per cent, bringing their average sale price to €317,235, followed by Waterford City, rising by 7.6 per cent to €195,571.

The reports author, Trinity College Dublin economist Ronan Lyons said Covid-19 has done little to impact the cost of homes in Ireland.

"Economic downturns are typically associated with falls in housing prices and thus most economists would have predicted a fall in prices this year, due to the Covid-19 pandemic. However, this downturn is unlike any other in recent memory.

"While some households have had their entire livelihoods and businesses destroyed, others have been largely unaffected. This can be seen in the surge in household savings that took place, especially in the middle part of the year," said Mr Lyons.

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"Housing demand held up remarkably well during the year, but the same cannot be said for housing supply.

"The first lockdown brought construction to a halt, while restrictions throughout the year have taken their toll on the number of second-hand homes put up on the market. The result is that the supply of homes to buy online is at a post-Celtic Tiger low.

"A normalising of social and economic activity in 2021 will undoubtedly ease the situation somewhat. Nonetheless, the underlying issue remains: a chronic and worsening undersupply of new homes, in a country with strong need for housing over the coming decades," he added.

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