House price rises across the Republic of Ireland slowed during the first half of 2001, driven by falling prices in the Dublin and Cork regions, according to Irish Life & Permanent’s (IL&P) latest survey.
According to IL&P’s House Price Survey, which is conducted in conjunction with the Economic and Social Research Institute, average prices rose by 4.8% over the first six months of the year, compared to 10.5% during the same period last year.
The slowdown was driven by a fall in prices for houses in the mid-to-high price range in the Dublin and Cork areas.
House prices in Dublin city and county fell in June for the first time since the survey began in 1996, by 0.4%. In Cork city and county, the Republics second largest population area, house prices fell by 2.5% in the second quarter compared to the first. This contrasts with a 1.4% rise in Dublin city and county in the second quarter when compared to the first.
According to Paul Murgatroyd, economist with Douglas Newman Good (DNG), properties are taking longer to sell and vendors are becoming more realistic in their expectations. “In addition, the growing reluctance of lending institutions to approve bridging finance has contributed to the slowdown in Dublin.”
A separate DNG survey of Dublins housing markets shows that second-hand house prices in Dublin dropped by 1.5% to an average of £166,700 in the second quarter of the year. The report found the decline to be sharpest to the north and south sides of the city, down 2%, whereas the west saw prices fall by only 0.6%.
“This reflects the fact that demand remained stronger for property priced below £160,000, as first-time buyers continued to purchase the more affordable property in the more established estates to the west of the city,” Murgatroyd said.
EGi News 08/08/01
