Two-tier property market firmly established as Dublin prices rise

A new report is raising concerns about a supply shortage of residential properties in Dublin.

The latest Housing Market Monitor from the Irish Banking Federation also shows that prices in the capital are continuing to rise.

The IBF study claims a two-tier market is now firmly established, with asking prices outside of Dublin increasing at a much slower pace.

Economist Ronan Lyons, who helped to compile the report, said there is a significant national variation.

"You've got conditions in the south western half of the island [that] are still quite soft in the market. It's got its own challenges around negative equity and vacant homes.

Whereas in Dublin, it's a very different set of issues - it's about getting more supply, turning over more properties, getting "empty nesters" to trade down, and, of course, getting more construction started in the capital."

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