Dublin house prices showing signs of stabilisation

Thursday 03 January 2013 12.10
Two reports on property prices out today from Myhome.ie and Daft.ie
Two reports on property prices out today from Myhome.ie and Daft.ie

Two reports on the property market both point to some level of stabilisation in the property market, especially in Dublin city.

A report from Myhome.ie shows that prices in Dublin fell by 1.6% in the last quarter of 2012 to bring the annual rate of decline there to 12%.

This is the lowest annual rate of decline in Dublin in four years.

However, the rate of decline in property prices nationally accelerated somewhat in the last three months of the year with prices down by 2.9%.

This compared with a fall of 2.2% in the third quarter and brings the annual rate of decline to 14.8%.

The survey indicates that the adjusted average house price nationally now stands at €201,000, down 51.5% from the peak.

Myhome.ie said that an analysis of transactions on the Property Price Register shows that the number of deals in 2012 was just under 21,000. 

This is up from 15.4% on the 2011 figures but almost unchanged from the 2010 total.

The moderation in the pace of decline, the increase in the number of deals during 2012 and the establishment of the Property Price Register were all positives for the housing sector which could be built on, said Angela Keegan, Myhome.ie's Managing Director.

''However, unless the impact of the Budget measures are offset by economic growth, increased employment and a recovery in consumer confidence, the prospects of a recovery in the coming year could be problematic,'' she added.

The Myhome figures show that among the countries cities, Galway saw the biggest price fall in the fourth quarter of 2012 at 5.1% and a yearly fall of 17.8%.

The average price for a property in Galway is now €185,000.

Cork saw prices decline by 2% in the last quarter of last year, while they were down 13.3% for the year to leave the median price at €195,000.

In Limerick and Waterford, asking prices are down over 13% in the year with the median prices at €155,000 and €160,000 respectively.

Meanwhile, asking prices in Dublin in the final quarter of 2012 were just 2% lower than a year previously, according to the 2012 In Review report published by property website Daft.ie.

Nationwide, prices were 9% lower than a year previously and 54.8% below their peak in 2007.

Daft.ie said that in general, the rate of price falls in the cities is less than elsewhere, with prices down by roughly 10% in Cork, Limerick and Galway cities, but by 17% in Waterford.

Outside the cities, prices in the final three months of the year were 13.3% lower than a year previously, the company added.

Daft.ie said the 2% fall in the Dublin figures are in stark contrast to this time last year, when prices were falling at a rate of more than 20%.

The survey notes that asking prices in south Co Dublin rose by 3.1% in the last 12 months, while they were unchanged in the city centre.

Asking prices in Connacht and Ulster are 20% lower now than a year ago. Daft.ie said that for the first time since prices started to fall, the fall from the peak is now greater in Connacht-Ulster at 55.9% than in Dublin at 55.4%.

"The contrast between urban and rural property markets has grown substantially over the last 12 months, led by a recovering Dublin market.

"In the capital, almost two thirds of properties sell within four months currently. In Munster and Connacht-Ulster, the figure is less than one third, and there has been very little improvement in conditions over the last year,'' Daft.ie economist Ronan Lyons said.

Meanwhile, Sherry Fitzgerald said 2012 was a turning point for the housing market.

The estate agent says that after five consecutive years of contracting prices, the average price of a property in Dublin rose, albeit by a moderate 1.5%.

Sherry Fitzgerald said that the rest of the country has also benefitted from greater stability with prices in Ireland falling by 3.3% in 2012 compared to a fall of 16.2% in 2011.