Dublin house prices up 7.7%

Second-hand house prices in Dublin have increased by 7.7 per cent since the start of the year, according to the latest Douglas Newman Good (DNG) property price gauge.

The estate agency also said prices have increased by 15.1 per cent, or ¤37,500, in the 12 months to the end of June.

The company attributed the price rise to a number of factors including an improvement in c onsumer confidence , the availability of mortgage finance and a limited supply of family homes.

DNG chief executive Keith Lowe said a lack of new construction was also putting upward pressure on prices and 2013 appeared to be a turning point in the market. Two-tier market “What has emerged is clearly a two-tier market with property located in the greater Dublin area far outperforming all other locations,” he said.

“Property prices in the capital are rising by over 1 per cent per month as demand is clearly outstripping supply.

“We also believe that prices in a number of high-population urban areas outside the capital are also beginning to improve somewhat but there are still challenges in some more rural locations,” he said.

The average price of a second-hand home in Dublin is ¤279,000. The south of the city performed best, with an annual increase of 16.2 per cent, followed by the north side, with 16 per cent. The west of the city had a 10.7 per cent increase.

Houses in the lower and middle price brackets (up to ¤350,000) performed best in the last quarter, with a 4.5 per cent increase.

However, houses worth more than ¤500,000 showed the biggest annual increase, 18.2 per cent. Homes worth less than ¤250,000 recorded the lowest annual increase (10.7 per cent). Cash transactions Using data from t he Irish Banking Federation and the property price register, the report also estimates that up to 62 per cent of the 4,774 sales in the first three months of the year were cash transactions. This compares with 47.6 per cent during the same period in 2012.

The register also estimates that the average transaction price of an Irish house was ¤191,320 for the period January to April 2013.

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