Residential property prices rose on an annual basis by 8.6% – the fastest annual pace in three years – in July, according to the latest figures from the Central Statistics Office.
The figures also show that the number of property transactions is now back to pre-pandemic levels.
Today’s figures from the CSO show not only that the property market has recovered from the pandemic, they also show property prices have recovered from their low point after the financial crisis.
Overall nationally, property prices rose on an annual basis by 8.6% in July. Prices in Dublin rose by 8.1% while prices in the rest of the country rose by 9.1%.
In Dublin, houses rose by 9.2% while apartments rose by 3.7%.
South Dublin saw the biggest price rise of 11.2%. Outside of Dublin, houses rose by 8.7% while apartments rose by 14.6%. Prices rose fastest in the Border region, with growth of 16.2%.
Nationally, prices have now risen 99% from their trough in 2013. Prices in Dublin are 106.8% higher than their low point in February 2012 while outside Dublin, prices have doubled since their low point in May 2013.
Measured on a quarterly basis, the price of new dwellings rose by 2.2% in the second quarter compared to the same quarter in 2020. This was down slightly on the annual rate recorded in the first quarter.
The rate of price increases of existing dwellings, however, doubled in the second quarter to 6.7% compared to the same time last year.
A total of 3,822 properties were purchased in July, an increase of 10% on June and an increase of 49.2% compared to July 2020. Existing homes accounted for just over 84% of transactions with new homes accounting for 16%.
The CSO said the volume of transactions from January to July now stands at 24,280, just marginally below the 24,416 properties purchased in the same period, pre-pandemic, in 2019.
First time buyers made up 32.3% of purchasers in July. Former owner-occupiers accounted for 53.5% while non-occupiers which include investors and public bodies accounted for 14.3%.
The median, or mid-point, price of a property nationally was €267,000 in July. In Dublin, it was €395,799 ranging from €560,000 in Dun Laoghaire Rathdown to just over €362,000 in Fingal.
Outside Dublin, the highest median was Wicklow at €370,000 while the lowest was Longford at €120,000.
The Eircode with the most expensive median house price remains A94 Blackrock, in south county Dublin at €650,000.
The five most expensive Eircodes in the country are all within Dublin. Outside Dublin, the most expensive Eircode remains A63 Greystones at €495,000.
F45 Castlerea in Co Roscommon and H23 Clones in Co Monaghan remain the least expensive at €90,000.
Commenting on today’s figures. Joey Sheahan, Head of Credit at MyMortgages.ie, said the housing market is seeing a flurry of activity at the moment – as evidenced by the 3,822 transactions filed with Revenue in July alone.
Mr Sheahan said that first time buyers make up a strong cohort of buyers as always, but we would expect that if the Help-to-Buy Scheme is extended in the upcoming budget – as expected – their share of the market will continue to grow.
He also said the percentage of new homes bought has also increased which hopefully is a sign of greater construction output in a market where the delivery new homes is absolutely crucial.
Brokers Ireland noted that many areas of the country reached or exceeded double digit growth year-on-year in July.
Rachel McGovern, Director of Financial Services at the organisation – which represents 1,225 broker firms – said this level of increase is “unhealthy for potential buyers and the economy at large.”
“With the exception of the release valve presented by new blended working arrangements that would appear to have increased the appeal of areas like the South-East and the Midlands which are seeing an 11% increase in prices, home ownership in the most populous areas of Dublin and its environs has largely become the preserve of those on higher incomes or those with strong financial support from family,” she said.
Ms McGovern said that on the basis of today’s figures, prices look like they will remain elevated for the foreseeable future.
“There is only one answer to soaring prices and that is to increase the supply of new homes,” she added.