Ireland’s property market has suffered more than most as a result of the Eurozone fallout, but rays of hope have been shining on the Emerald Isle in the past few months. The Central Statistical Office reports that residential property prices are still an average of 50% below their value in 2007, but an increase in August represented the first consecutive month-to-month gain in more than five years. Transactions are still very low, however, and the overall picture remains grim considering how far prices have to climb to get within competing distance of their former worth. For more on this continue reading the following article from Property Wire.
The slowing of property price falls in Ireland is continuing with the latest data showing they increased by 0.5% last month.
This means that in the year to August residential property prices have fall by 11.8%, down from the 13.6% annual fall in July and the 13.9% recorded in the twelve months to August 2011.
The 0.5% rise adds to the increase of 0.2% recorded in July and is good news for the Irish property market. It was the first consecutive property price rise since the crash over five years ago.
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But it still has a long way to climb back with overall the national index from the Central Statistical Office 50% lower than its highest level in 2007.
Also the Dublin housing market is still struggling. Property prices fell 0.5% last month and are 13.8% lower. Within that house prices decreased by 0.7% in the month and were 14.4% lower compared to a year earlier while apartment prices were 13.4% lower when compared with the same month of 2011.
The price of residential properties in the rest of Ireland rose by 1.3% in August compared with a decline of 0.3% in August last year. Prices were 10.7% lower than in August 2011.
It now means that house prices in Dublin are 56% lower than at their highest level in early 2007 and apartments prices 63% lower than they were in February 2007.
Overall property prices in Dublin are 57% lower than at their highest level in February 2007. The fall in the price of residential properties in the rest of Ireland is somewhat lower at 46%.
The CSO’s monthly survey has become the official measure of Irish residential price trends and is based on data of housing market purchases funded by residential home loans starting in 2005.
A low level of transactions mean the index is still is catching up with declines in market prices, and residential prices already may have dropped by 60% from their peak, according to analysts.
This article was republished with permission from Property Wire.