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NEW INFORMATION FROM the Eurostat has shown property prices to be rising faster in Ireland than anywhere else in the EU.
In the 12 months to the end of September last year prices were shown to have gone up by 15% – substantially more than the 2.3% EU average increase.
Ireland was also shown to have one of the largest quarterly jumps – with a rise of 6.8% between the first and second quarters last year.
Increases
Countries that also saw substantial increases in the same 12-month period were Estonia (13.2%), Latvia (11.7%), Sweden (10.3%), Lithuania (10.1%) and our neighbours the UK (11.7%).
In the same period some countries across the EU saw house prices falling.
In Slovenia things fell by -5.3%, in Romania by -2.3%, in Italy by -3.8% and in France by -1.2%.
When including all countries across the euro area things were seen to have only increased by 0.5%.
Despite these big surge in house prices, this trend is unlikely to continue this year. It is thought new Central Bank mortgage rules applicable from this month will slow growth.
House buyers are now required to come up with 20% of a house’s price as a deposit and are only being allowed to borrow three-and-a-half times their own income.
There has been some discussion over whether these rules will be modified.
There is some concern from estate agents that limiting the market could drive rent above its peak 2007 level.
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Will we ever learn…
The Central Bank has. The rest of us are still playing cop on catch up. Supply and demand aside, it’s becoming clear that a high deposit and a cap on multiples of annual earnings are the only ways we’ll nip this in the bud.
Quick!!!!
Rent control time!
All well and good feral but how do they slow down the money investors? Driving ftb out of say market. Its fine stinging people with deposit rules and mortgage rules but does this do anything to slow down those investment vultures.
‘Fergal’
The bang will be right along behind the boom,they are blowing up the bubble again
You mean dublin when you say Ireland. Right ?
This is a bubble, not a boom. The deposit rates mean jack s to property oligarchs who live on the other side of the interest apartheid wall. More trickle up economics. This will further exacerbate the wealth and income gap
Clearly Dead Irish Cats are more bouncier than their European counterparts.
Strange tagline
HERE COMES THE BOOM?????
Here comes more homelessness, poverty, indebtedness, unenforced regulation, lax regulation, poor regulation, no regulation, shoddy expensive workmanship, bank profiteering, bank corruption, overcharging, shoebox deathtraps etc etc etc,
Things will get very interesting when the ECB raises their rates up to a normal level.
So prices increased 650% the EU average in a year. Taken with the fact the last quarter was apparently slow, most of this would seem to have been in the first 9 months. Do we really need any more evidence that this is out of control. I can’t believe this is happening again.
Who will the unholy alliance of fianna fine fail gael blame if they get into power after the next election and the next property bubble explodes.
Ah sure its going to be a soft and tapered landing this time. Don’t worry about it.
So what you’re saying is I SHOULD invest heavily in Bulgarian property?
Oh no here we go again
Just want to share some thoughts and observation. And this makes sense in the context of the article above. The question is whether banks supports this high growth of property prices. To give you an example, currently I am looking for the house and the one I was interested appeared in the market just month ago in Maynooth. It’s initial price put on daft website was 135K EUR, it is possibly a bit lower than other houses with the same configuration, but it was not in the perfect condition and needs full reconstruction. Agent organized an open viewing were over 20 people were attending over the 2 hours slot. Agent also told that the house is bank’s property. After 2 days house price increased to 189K EUR, after one more day to 190KEUR and after the week, which is now it stands 201K EUR. I am not sure what is going on here but I don’t think the bank not sure what is the market value of the house by putting down low initial value and why the concert with open viewing was required when there was no intention to sell the house. And if there is many “shadow houses” like that then it makes sense fast growth in house prices and long viewing list of people coming to see the houses (which they will not get as it is only cheap to create panic and stimulate price growth)… As I say just thoughts but would be nice to have those cases reported somewhere for detailed examination and make banks explain what is the rationale behind this strategy, why price for this particular house is growing on a daily basis.
Id imagine in this instance the bank was trying to secure a return on whatever investment they made to the original owner (via loan or mortgage) their goal is to put it out to market at a lower asking and this stimulate a rush. Which it appears in this case they succeeded. People will come if they think its a bargain and i suppose the house is worth what someone will pay for it when all is said and done.
It’s a good day to be a landlord, pints on me
I red thumbed it but you’re right unfortunately, especially when you add it to the lack of legislation for tenants rights and the property shortages. :-(
I green thumbed you cos I like free beer
People never learn
Woohoo….we’re back baby, now where can I buy a hot tub??
…Just more of the same old, same old. Then we wonder why our precious young people are leaving the country in their droves? What a great little country to raise your family in.
Fantastic, I’ll be able to flip it soon!
For the life of me, I cant be sure, but I have this weird deja vu feeling that I’ve heard this somewhere before…..
What could possibly go wrong?
Here we go again.
What goes up so quickly will eventually come crashing down.
Factors driving this are obvious but temporary.
Same shit different day…
Does that mean a property bubble again or are they confusing Dublin with the whole of Ireland, once more lol.
Stupidity doesn’t learn from experience. It’s not as if all these rubbish houses are now well insulated all of a sudden… or as if the tiger was back.
have your say