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ASKING PRICES FOR homes in Ireland’s cities outside Dublin have leapt over the past three months.
The latest house price report from Daft.ie showed a sharp reversal in the fortunes of home buyers both in and outside the capital, where the Central Bank’s mortgage lending rules have put the brakes on the country’s most-expensive property market.
The average asking price across Dublin was down 1.4% to €306,340 over the three months from July to September, only the second time since 2013 there had been a quarterly decline.
But elsewhere quoted prices were up 3.9% to just over €205,000 with properties also selling for greater premiums over the ticket rate than in the capital when final transaction prices were factored in.
The biggest increases in asking prices over the past three months came in Ireland’s other major urban centres. The rise was led by Limerick, where the average price was up 7.7% during the period.
In Cork, asking prices have jumped 19.1% against the same time a year earlier, compared to only a 2.4% annual rise in Dublin.
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Dublin, average asking price: €306,540
Quarter 3 change: -1.4%; Year-on-year change: +2.4%
Cork city, average asking price: €225,361
Q3: +6.8%; YoY: +19.1%
Galway city, average asking price: €222,616
Q3: +7.2%; YoY: +18.1%
Limerick city, average asking price: €143,929
Q3: +7.7%; YoY: +17.3%
Waterford city, average asking price: €126,688
Q3: +7.2%; YoY: +12%
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The Central Bank effect
The report’s author, economist Ronan Lyons, said the figures confirmed the Central Bank’s lending rules had a “massive impact on house price inflation in the dearest parts of the country”.
Compared to a year ago, asking prices had fallen or were static in several pricey Dublin postcodes, while every part of the city and surrounding county had experienced a drop over the past three months.
At the average asking price in Dublin, a first-time buyer would need a minimum deposit of €39,308 and an annual household income of €76,352 to get a loan under the lending caps.
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“This immediate cooling of the market is to be welcomed, although a side-effect of the income caps is a shift in demand elsewhere in the country,” Lyons said.
In Ireland’s other cities, where year-on-year inflation is at 18%, this is arguably Central Bank income caps acting as a target, rather than a constraint.”
Outside the major cities, Offaly was the only county to record a quarterly decline in asking prices. Advertised rates were down 0.2% to an average of €141,109 over the three months.
Longford was the cheapest county in which to buy a house with an average asking price of €99,775, up 8.7% over the past year. It was followed by Leitrim with an average asking price of €100,480, an increase of 5.2% compared to the same period in 2014.
The number of properties listed for sale on the site has stabilised at about 30,000, less than half the peak of over 60,000 in 2009.
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Inflation slowing
A report out last week from rival property site MyHome.ieshowed similar, although smaller, falls in Dublin asking prices to those in the Daft.ie figures.
Davy chief economist Conall Mac Coille predicted national house price inflation would slow to 5% by December and stay steady at that rate next year.
Asking prices are used as an indicator of where the market is headed, compared to figures from the CSO and Property Price Register which look back on completed transactions.
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.
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How about some tax cuts for tax payers, and social welfare cuts for the bottom feeders
@Charlie O’Neill: Charlie only cares about you if you haven’t been born yet. If you happen to be out of a job you’re a ‘bottom feeder’
@paulganly: Plenty of jobs around, and plenty of lazy fockers too. No problem helping those genuinely unable to work for health reasons, but all the spongers should get reduction after reduction, then they will have to go earn a living.
@Charlie O’Neill: dark aul view social welfare is spent in local businesses while apple tax cheats is held offshore why does ffffffFG get 2 budgets again? fffg MERGE already!
@paulganly: How about encouraging people to find a job & rewarding those that make an effort.
@Charlie O’Neill: correct why should
Farmers
Get subsidies while also working full
Time outside farming
Sharp cuts to welfare needed. No excuse. How is it that tens of thousands of Eastern Europeans manage to get a job in your local Spar yet the locals in social housing don’t even bother to apply. People need to be forced to work if they are able-bodied.
@Fred Jetson: I was made redundant from a major retailer with 33 years service over a year ago and all my efforts to get back into work failed. I tried both full time and part time even in these small shops. I am at the moment doing a 6 month course in CAD and CnC manufacturing and if it wasn’t for our welfare system would have been impossible. I desperately want to work and earn a living but no one will employ me. Please don’t tar all of us on the dole with the same brush. One day, we will all need assistance.
@Francis Sally:
Francis, fair play to you and I hope you get work in the near future. Unfortunately not all of society has your work ethic which I am sure will benefit you and you will get a job.
@Francis Sally:
I wish you well and hope you get a job.
Where welfare really needs addressing is on giving people out of work for life. that is unaffordable for a country E200 billion in debt. Even without that debt. The OECD has criticised Ireland for this more than once in the past few years. Very few countries do it.
Another thing is paying those who have not contributed enough, or at all, to the tax pot and yet who claim everything that’s going for years on end.
And we know who those groups are.
@Fred Jetson: because the Irish will not work in spar. Dope
@Rory: or is it spar won’t hire Irish people !!!!!
@Nick Allen: thanks for the kind words, Nick…. completely agree with you. Worked since I was 16 and it’s horrible to be in this situation.
@Francis Sally: people in this little country are notoriously quick to tar everyone with the same brush.. until it happens to a member of there own family…
@Francis Sally: I don’t think anyone is tarring all social welfare recipients with the same brush or at least I hope not but there are plenty on it that don’t want to work. Unfortunately it sounds like agism is against you as employers don’t want to employ people over a certain age. Best of luck to you.
@Fred Jetson: That’s a lot of the problem, that eastern Europeans can come here to work but who wants to work over there? Nobody, because there’s nothing there for western Europeans.
0 welfare increase please.
@Paul: Agreed… Cut welfare to Apple immediately and invest in services.
@Louis Jacob: We’re not paying “welfare ” to apple. We’re being asked by the European Commission to act as tax collector for the rest of Europe. Not sure how much of the tax we’d actually get to keep, which would be none if the tax is not legally payable
@Thomas O’ Donnell: 0.005% Tax? Call it what you like. I’m not saying they need to act as anyone’s ‘tax collector’. I’m just saying that Apple should be paying more.
@Paul: How nice of you. Those of us struggling on careers and disability allowance will just go dig a hole and die will we? Or after paying tax all my working life I am now in a position to actually get something back from the state when I need it most . After all my pax paid for education health child allowance for you and everyone else.
@Louis Jacob: zero excuse for able bodied people not to work now.the lazy could use the excuse that jobs were scarce during the crash!
Plenty of work out there now!
@Catherine Sims: People seem to lump the person like yourself and the worker that has worked for donkeys years but lost their job in the same category with the lazy shites that have never had a job in their lives.
@Louis Jacob: Have a look at the info graphic EU Competition tweeted out. Shows Apple products being bought all over Europe and profits going to Ireland. It was a not to subtle message that the tax is owned to France, Germany and the rest of Europe and Ireland needs to put that right.
@Brendan Walsh: the tax is not owed to the rest of Europe. Tax on sales is called VAT. Tax on profits are called corporation tax. If you have subsidiaries in multiple countries then you use transfer pricing to sell your products to countries where taxes are higher from countries that have lower taxes. If you don’t have profit in France or Germany then you don’t owe tax. Simple! You or I would do the same to pay as little tax as possible. Other European countries are so far behind in business terms. Now they want to move the goal posts and tax revenue. A joke!
“Peoples pay should rise at a gentle pace”….meanwhile TD’s get €2700 pay rise a year for the next two years. Nice gentle pace there !
@zippo: was thinking exactly the same Zippo…one rule for us and one for the peasants
Lower your own salaries by at least 30% and halve the amount of TDs .
@Frank Brennan:
That will not have any material impact on the overall finances
@Frank Brennan: and it’s also constitutionally illegal.
@Nick Allen: Doesn’t hurt to lead by example though…….
@Nick Allen: correct, but it should be done.
@Frank Brennan: I presume that the lowering of salaries applies only to TDs. If so , I agree.
@rory conway: just the TDs
@Frank Brennan: we were given the chance to get rid of that Seanad joke shop and didn’t take it.
Conmen in suits. That’s all they are.
“McGrath pointed out the government need to find revenue-raising measures.”
Another way to create funds would be to look at operational cost savings. Perhaps some efficiencies and accountability in the public service? A novel idea would be to incentivise people to look for cost savings within their departments.
How about the Nordic model all Irish politicians praise as the most fair…..In Sweden people on €18000 pay €3000 in income tax….Here they would pay hardly any tax….
@John003:
As you say the tax on 18k in Sweden is 3,200 whereas in Ireland not is 600. But if the salary is 35,800 tax in Ireland rockets up to 7,000 (Sweden is 8,300). This increase is far too much and should be spread more evenly.
@John003: aye yeah. But do the pay the selection of stealth taxes we pay?
@oh i dunno:
Their average water bill is 492 euro a year which is a lot higher than the 160 a year Ireland was looking to charge
FF budget. Property tax breaks in the property bubble, get rid of financial regulation, the Galway tent, and more brown envelopes.
In other words ,workers your screwed , people who don’t want to work your laughing.. no changes there then
And pay increases for politicians again. Come on journal, independent reported this on Monday.
Keep your miserly cuts and hire some extra nurses with the money!
Party of crooks!
I wouldn’t buy a second hand from them .ff = Corruption
Confident we’ll be in power after the next election,and meanwhile will supply support while it suits…no no doubt the blueshirts will return the favour…
Feck off FF. You destroyed this country then FG buried it.
“Confidence and supply”
What a load of horshite.
Everyone complains and begrudges unfortunate people on the dole.. trying to get by.. but nobody says a word when members of government award themselves huge undeserved salary increases ..and claim enormous expenses..
pathetic! the usual from FF, dont try to alienate anyone, something for everyone, from the same crowd that were throwing out double digit in terms of % welfare increases every year, when tens of thousands of foreigners were coming here to do work that many of the Irish wouldnt!
ffffffFG will be doing its 2 budgets again I see MERGE already!
Or we could just our Apple Tax!
Jesus the amount of Heartless people here in Ireland is unreal. everyone blameing the people on social, people who have lost their jobs, made to feel like peace of waste, living on €198.00 per week, you try and do that. People should look at the real problem in this country, The Government end of story, they waste money left and right, set up bull taxes. We must all share the blame for this deplorable condition, we keep letting the wasters in power doing the same thing over and over again. The USC was only to last 8 months, still here. Anyone that blames people on Social are NO better then the rednecks in America.
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