Property price growth in Dublin fell below national average in first three months of 2015, due to rises in the rest of the country, according to the latest property price report from Daft.ie.
It is the first time that this has happened in four years, according to the property website. Asking prices nationally increased by 4.6% in the first quarter, a turnaround from the 1% decline in the final three months of last year.
Asking prices in Dublin are now 2.9% higher than at the end of last year, whereas outside Dublin prices rose by nearly 6% in the first three months. Cork saw the biggest rise in asking prices during the quarter – up 7.2% – while Galway prices rose by 6.8%. Prices in Limerick were 6.7% higher while in Waterford there was a 4.9% increase. Nationally, the average asking price for a property is €201,000 – compared to the mid-2013 low of €170,000.
The report’s author, Trinity College economist Ronan Lyons, said the new Central Bank rules on deposits were clearly having an impact on the market. “Dublin prices are now anchored to real economic conditions, with survey respondents expecting significantly slower house price growth now than a year ago,” he said.
“Similarly, compared to a year ago, a far higher proportion of respondents, in the capital and elsewhere, indicated the need to save for a deposit as a key reason for delaying buying a home.”
Mr Lyons said the Central Bank rules have had a positive impact on prices outside of Dublin, as many areas have prices that are well within the loan-to-income limits.
This should shift demand to counties besides Dublin, however he warned that this would not address the lack of supply that currently exists in the market.