The body which represents estate agents has predicted that house price growth will slow to 4-5% in 2007.
The Irish Auctioneers and Valuers Institute's annual property survey says 2006 was 'a year of two halves', with Dublin auction prices rocketing in the first half, but 82% of houses withdrawn from auction in the second half.
Chief executive Alan Cooke said the withdrawals were the result of 'overly optimistic' price expectations from sellers and uncertainty about stamp duty ahead of the Budget.
The IAVI survey said prices of new detached homes in Dublin grew by around 10% last year, while Munster houses were also up around 10%. Connacht growth was 8-9%. It said price inflation for apartments was more modest, as 8.5-8.9% in Dublin.
The survey reported that residential rents accelerated, with rents in Dublin and Munster rising by 6%, double the previous year. The IAVI also said that the value of rural pubs fell for a second year, with drops of up 8.7% in some areas of Leinster.
But the price of sites for development increased by up to 17% in Dublin and 13-16% elsewhere, reflecting what the IAVI called the 'remarkable growth in household formation' and suggesting confidence among builders and banks about the property market.
Meanwhile, a survey of property developers and investors shows that they now see better opportunities overseas compared with Ireland.
The PwC/Amárach survey found that well over half of those surveyed would be more prepared to invest in developments abroad than in Ireland.
On house prices, 24% of those surveyed expect growth of more than 7% in 2007, but 10% expect prices to fall. 76% also said banks were being more cautious on lending than they were a year ago.
