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Year-on-year change in asking prices, Q4 2013, according to Daft.ie. Click here if you’re having trouble viewing this image.
THE DOUBLE-DIGIT rise in house prices in Dublin is masking falls in every other party of the country, according to the 2013 report from the country’s largest property website.
Daft.ie’s House Price Report shows that the average national asking price is now €171,000 a rise of 0.2 per cent from the beginning of the year and the first rise over the course of a year since 2007.
This is still down from 55 per cent at the peak of the property bubble and Daft says that Dublin’s performance – with prices rising 11 per cent in the year – masks annual falls of 4 per cent in Galway, 6 per cent in Cork, 7 per cent in Waterford and 12 per cent in Limerick.
Overall, prices outside of the capital fell by 6 per cent. This is the smallest decline in give years. Asking prices in the so-called commuter belt counties changed by less than one per cent over the course of the year.
Daft spokesman Kieran Harte said that the the “tale of 2013″ was the lack of supply in sales, rental and shared accommodation in the capital.
“This lack of accommodation across all sectors has had a major influence in Dublin’s asking prices returning to 2007 percentage increases,” he said.
“The only solution is to begin planning and building new accommodation in the capital which will cater for the demand created by the creation of jobs there.”
Daft’s chief economist Ronan Lyons said that that solution to rising house prices in Dublin is to tax empty or derelict sites, a measure being considered by Dublin City Council and supported by current Lord Mayor Oisín Quinn.
“There is plenty of scope for increasing housing supply in the capital, once we as a society not only make better use of empty sites, but are also prepared to re-designate land so that it can be used more effectively and facilitate building up where it pays off,” he said.
Daft.ie is part of the Distilled Media Group. Journal Media Ltd has shareholders – Brian and Eamonn Fallon – in common with Distilled Media Group.
Read: Dublin property prices up 15 per cent as rest of country shows some positive signs
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It’s like the saying the average wage is 32,000. But the wage spectrum is anything from 10,000 on the dole to 500,000.
I know one thing a few hand full of people who can afford to buy but most don’t have deposits or zero chance to get finance.
Rich snapping up the property looking to make a killing again in Dublin it seams
Try buying a house in Kk prices are going up and selling pretty quick
I’ve a spares cardboard box going in Ringsend next door to a methadone clinic for only 1500 euro a month plus bills with no parking space that’s flat out in demand…. And I can’t rent me 12 bedroom mansion with 6 solid gold en suites, monkey Butler and rolls royce for 20 quid a month in Cavan…!
House prices have definitely gone up in my area and anything of value sells very quickly indeed.
3 years ago for sale signs gathered green mould. Pirces are still 1 third of what they were at
peak, but houses in eastern europe and low wage economies are making more, so i think it
will prices will inevitably rise to an affordable lever for Irish wages. From an investment point of view
some properties for sale are returning 15-20% rental yeild, this is highest in any developed country.
I’ll give you 2000 a month for the box
I have to agree with Anonymous in his major points .
I have read these “Survey’s” by Daft.ie over the past number of years .
Asking the question as always – what is the relationship between “an asking price” and an actual “Sale Price” ?
We would argue that there is little or no relationship whatsoever . To explain – people constantly contact us to consider listing their property For Sale with us . We then arrange to view the home with them. Once viewed , we offer them an opinion of value . If our opinion of where the market is nowadays does not agree with their expectation , we just don’t take it on per say.
However this does not prevent the individual concerned from trying to list the home themselves on Daft.ie or/& a less scrupulous Estate Agent , at their unrealistic expectation .
This is a very commonplace scenario , which just shows up what an utter nonsense this form of “Survey” truly is !
This is a classic example of – Reader Beware !
It is a 2 tier market because in terms of infrastructure Ireland is a 2 tier country.
Every County is the same. Population density has a large impact on what services can be provided due to economies of scale. Ireland is no different
Where does ‘glorified piss’ fall on that scale?
Some basic services must be guaranteed despite population density. This is what happens in true first world countries that don’t see every single situation as a money making opportunity.
Exactly. It isn’t as though Ireland is a massive landmass with a huge population, we’re a small island with the population of Greater Manchester. Given how well the country has preformed in the past and our potential to bounce back it would seem reasonable to expect a certain standard below which basic services would not fall below. Sadly not the case though.
Greater Manchester apparently has 2.5 million https://en.wikipedia.org/wiki/List_of_urban_areas_in_the_United_Kingdom. Has emigration from Ireland been worse than we thought?
I don’t think the latest census is due for a while so his guess is as good as yours mate.
You mean Manchester’s population will have doubled since the last census, mate?
(Last census being in 2011)
I hate this rubbish about “a population only the size of Greater Macnhester”.
Where else in the world uses such foolish comparisons.
England and France only have the population of a large rural province in China. London has a smaller population than all the slum dwellers in Greater Delhi etc etc.
Wtf does it add to any debate or policy discussion.
No I don’t.
Yawn. The Journal talking up the housing market again.
Were the champions come from? Where maybe?
Where*
Gosh it must be such glorious fun to pay 350k for an smallish 3 bed home and €1200 a month per child in creches.
and expect a couple on 40k each to have any kind of life quality is delusional.
Since Daft.ie and their “economist” keep repeating this tale.
I’m afraid I will have to continue to be skeptical.
Let’s take a closer look.
There are only approx. 3000 residential properties for sale in Dublin at any one time (there are only approx. 2400 residential properties for sale on Daft.ie today.
Take out the 2000 shoebox apartments and houses in bad areas.
( and taking into account there are only 362 residential properties for sale today in south Dublin, 247 of which are houses )
(by the way 63 of those houses in “South Dublin” are in Tallagh)
Now I know there are some good areas in north Dublin as well.
However I hope that the illustration of the basic statistics involved that are listed above, point out that these prices “rises” were based on only a few hundred cash purchases in the more favorable post codes.
Basically what you currently have is
a few sought after areas in Dublin,
where there are only a few houses for sale at any one time,
and a few thousand cash rich buyers chasing the same few houses.
I would hardly say that “we have turned the corner”.
Far from it.
More likely that these few thousand cash rich buyers are panicking for fear of a Cyprus style cash grab and they are desperately trying to try and preserves some of their wealth.
Very few (if any) of these properties were bought by owner occupiers.
When the banks, who lets face it own a Sh1tload of these properties, wont lend out mortgages on them I’d be very cautious.
At least in this article Daft.ie and their “economist” is agreeing that the statistics are skewed.
Why build more houses for greedy investors to buy?
Tax the investors,speculators and vultures out of the Dublin housing market
and let’s see how many nice family homes come on the market for young couples to buy.
I say that daft.ie are focusing on small pockets of information to try and spin up a dead, tanking, stagnant housing market for their own benefit.
They are intentionally not showing the big picture in these infomercials.
Buyer Beware!!!
The important thing is to create housing of the type needed, and where people want to live – near schools, services, social outlets, transport etc – and not just build where a developer can get cheap sites and easy planning.
I am two years trying to get planning for an infil house in an established area of Dublin. It is a continual fight with the planners as it is being refused because it is different to what was built in the area 60 years ago. Frustrating.
Bleedin Dublin
I suppose some tool is going to spellcheck bleedin… Tee hee.
So much for the neo liberal ‘efficient markets’ eh?
Tho’ this only their PR/propaganda guff. Even it’s own adherents know that the neo liberal economics doctrine of the last 3 decades is a speculator/market manipulator’s dream. No where more so than in ‘property’ – really, land speculation, whether a building on it or not.
Ronan Lyons, rare for a mainstream economist, actually shows concern for the market manipulation/hoarding in suggesting a land (not property) tax, to make it less worthwhile to hoard and speculate.
One might have thought that such considerations had been addressed by now, after the property developer/speculator sector collapsed the nation’s banks 5 or so years ago and dumped the massive cost onto the ordinary citizens. Insult to injury after being shaft’d for the price of our homes, buying or renting.
But no, apparently not. It seems the entire establishment could care less & just wants to get back to business as usual.
I think we can conclude the obvious reason for this. The top few percent, including politicians, senior public servants & media owners/editors had very significant vested interests in the speculation/manipulation and renting businesses. All, of course, simply a milking machine of overpriced homes for the majority of ordinary citizens. (Not to mention the equally significant Commercial premises market that added ‘rentier’ costs onto everything.)
There’s a couple of approaches to resolving this situation & probably both should be adopted to the degree possible.
In general, the public sector should be getting the rise in value of zoned land enjoyed by private speculators. The latter merely extract & provide no value whatever. A massive tax on land capital gains and a tax on land holding will clear them out of the market & release land for use.
The public sector should also be a major player in housing provision. Every development should have a minimum proportion of social housing for rental. This can & should be operated on a non-profit but no cost basis, so there are no reasons not to do this (no ‘finance’ barriers) given the abject failure of the private sector to deliver appropriate housing at affordable prices.
Housing should not be run for private speculators and rentiers. It is a basic need for everyone & the government should play a leading (but not exclusive) role, providing we can get the politicians’ etc snouts out of the trough. Consideration should also be given to some public provision of commercial premises as a price/market stabilisation measure. Again, on a self-financing basis.
The other thing that should be done, tho’ admittedly a more difficult & longer term project, is to balance employment away from over loaded Dublin to where there is surplus accommodation and more adequate infrastructure.
Bleedin Dublin ….. dry.
Trying to pack all the jobs and population in to one sea and mountain locked city and then expect couples on 40k each to afford houses or child care there.
Not going to happen people, quality of life will be hell for them.
One of interesting aspects of the Celtic Tiger “boom” was builders apparently building speculative housing estates and even apartment blocks out in the boonies where there were no services of any description. On the other hand, maybe culchies are too canny to get involved in property again quite so soon…
I don’t think it’s a case of the country folk being more canny than their city cousins.
What may be happening here is that Dublin is very much a financial hub and as we know a lot of new money circulated by Europe and Mario has ended up in he stock market. All that is going to happen really in Dublin is a localised property crash following a stock market crash on a global scale. There has been no recovery just a made up one to allow the politicians and inner circle feather their beds once more.
Have all the repos come onto the market yet?????
Higher prices hmmmm not buying it!!
Im not looking to buy im just pointing that i wouldn’t believe everything i read
Forget that one,Lisa,as the banks won’t be flooding the market with 3 or 4 bedroom houses ,maybe at a drip ,though!
Round my way house prices average 2-250,000 very unrealisitic for the foreseeable future in donegal where there has not been a job created in my locality in 20 years!
It’s a pure investment market right now and most of it foreign I would imagine. Government and the banks need to get off their arses and help people get finance before prices go through the roof again and the average Jo is priced out of the market.
Won’t lending to people also push the prices further adding to the wishes of the speculators?
Of course lending will push the prices further but property prices are generally slow to react to real time supply and demand. If they start to lend now then families who need a home can get one at a reasonable price. If they wait another 2 years before starting to lend then investors will have distorted the market and prices could be up €50,000 thus making it even more difficult for people to qualify for a mortgage based on their earnings.
Buy now with borrowed money and a whole section of the market still tied up in NAMA? Sounds like a bubble for bargains at the moment. People cant resist a perceived bargain as we found out a few years back.
My friend bought a 4 bed semi d in Castleknock last summer. Another couple bought a house on the same street 3 months later and paid 70k more. Both houses needed extensive work done! 4 bed houses in parts of Dublin are like gold dust and even though there were thousands of houses built during the boom, the majority seem to have been 3 beds.
Perhaps there’s loads of 4 beds locked away in secretive NAMA, who is to know? Also 70k 3 months later is ludicrous and sounds reckless, but there we are now, reckless lending, reckless borrowing, reckless buying.
It is madness but my friend said she was lucky to get their house because they just wouldn’t have been able to afford it 3 months later. 3 bed houses in Dublin 15 haven’t risen by much but there are bidding wars over 4 beds now. It’s crazy but it is being played out exactly how the banks want it to be.
Cash buyers investing the cash >100000 that will be “taxed” Cyprus style once the banks admit or are told they need another bail out. Mario ain’t paying on his own that’s for sure.
Prices are about right at the moment. We will have to wait and see how this turns out. Hopefully I won’t be able to say I told you so at the end.
Keep the pylons out up the dubs
Laois has the cheapest houses despite having the fastest growth rate in population increases. Interesting.
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