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HOUSE PRICES HAVE hit a record high as property prices have risen to 3% higher than they were at the peak of the property boom in April, 2007.
The latest findings from the Central Statistics Office show that residential property prices have increased by 129.7% from their low in early 2013.
Overall, the National Residential Property Price Index increased by 8.6% in the 12 months to November 2022, as prices went up by 7% in Dublin, and prices outside of Dublin went up by 9.8%.
The median price of a residential property purchased in the 12 months prior to November 2022 was €300,000.
The lowest median price regionally was €150,000 in Longford, while the highest median price was €620,000 in Dún Laoghaire-Rathdown.
Statistician Viacheslav Voronovich pointed out that the amount of dwellings purchased also increased as in November 2022 4,901 residential property purchases were filed with Revenue, an increase of 7.3% compared to the same period last year.
“The most expensive Eircode area over the 12 months to November 2022 was A94 ‘Blackrock’, with a median price of €745,000, while F35 ‘Ballyhaunis’ was the least expensive at €125,000,” Voronovich added.
The prices of new dwellings rose by 9.1% over the 12 month period. Overall, prices of new residential properties have risen by 93.3% since their trough in the middle of 2013, and the prices of existing dwellings are now 131.9% higher than their low in 2012.
The most frequent type of buyer within the time frame assessed by the CSO were former owner-occupiers, who purchased 53.5% of the properties bought, while first time buyers represented 33.2% of buyers, and non-occupiers represented 13.3%.
Social Democrats TD Cian O’ Callaghan has said that the continuing rise in house prices is “deeply concerning”.
“The Government needs to urgently change tack on its housing policy. The Minister must immediately act to increase the supply of social, cost rental and affordable purchase homes, and tackle delivery bottlenecks when it comes to land and financing.
“In addition, the scandalous waste of vacant properties must be confronted head on with the introduction of a punitive tax to heavily discourage leaving homes empty,” he said.
O’ Callaghan added that in his view, “given the prohibitive cost of home ownership, it is clear we cannot just rely on the property market to solve the housing crisis”.
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All part of the FFG playbook. The more homeless there are, the more they can line the pockets of their buddies in the hotelier industry with the emergency accommodation scam. The more people struggling with rent on HAP there are, the more they can line the pockets of their own and their landlord buddies with HAP, public money into private landlords accounts. The fact we have a half billion € unspent housing budget, rather than using this money to start a state construction company and building social housing to take pressure off both public & private housing, shows FFG want this problem to happen. It’s not a bug, it’s a feature of a neoliberal government hellbent on increasing wealth inequality.
@Sean Stevenson: so why did they bring in rent controls, bans on eviction, and tons of RTB bureaucracy that are driving landlords out in droves? FFG have a funny way of rewarding their friends.
@Ciaran O’Mara: They bring those in for public optics. Rent controls have completely failed, as they were tied to inflation during a time of record inflation. Eviction bans are in place during a time of crisis, they aren’t permanent. If they were serious about this housing crisis they would ban foreign institutional investors and begin to solve the crisis with social housing, rather than such large budgets to temporary measures like HAP and emergency accomodation, which the public gets zilch from once tennancy ends, unlike public housing.
@Sean Stevenson: Wrong on rent controls matching inflation rate. Do some research.
@Declan Doyle: From Citizens Information: “Since, 11 December 2021, annual rent increases in RPZs are capped in line with the rate of general inflation or 2% a year, whichever is lower. So, if your landlord reviews the rent every 12 months and the rate of general inflation is 1.5%, then your rent can only be increased by a maximum of 1.5%.”
@Declan Doyle: https://www.irishtimes.com/business/economy/report-claims-rent-controls-have-backfired-and-worsened-crisis-1.4881856
2% yearly increases still allowed if inflation outpaces this amount, as well as new rental properties or tenancies being excluded from the restrictions, how many people are these helping? Again, it’s all for public optics. So they can wave their hands and say, we’ve tried all these options and nothing works! It drives small landlords out of the market to be replaced by institutional investors with new builds.
@Sean Stevenson: what would you do differently?
@dublindamo: I have outlined several solutions that need to be implemented in my previous comments, it’s on you that you chose not to read them.
As the Bubble continues to grow as it did before all it will take is the sharpness of another recession that eventually will happen… And as night follows day we will see vulture funds circling around to buy up more property in this endless cycle.
@Paul Maguire: so many people like you don’t actually understand what a bubble is and think high prices make a bubble. There was an oversupply before but now there is a lack of supply. Prices go up when that happens, bubble is where prices keep going up regardless of supply. Many people want it to be a bubble as a punishment as some kind of karma. Life isn’t like that
@Craic_a_tower: obviously you don’t know what economics is …if there is a recession and people losers their jobs and are unable especially high-end jobs like the Tech and the pharmaceutical sector… People would not be able to pay for high mortgages… as this would have a domino effect and other sectors
@Paul Maguire: it is actually you showing you don’t understand economic theory. Supply and demand trumps what you are saying as we still have high employment and high wages in this country. The demand is very high and plenty of people can afford it
@Craic_a_tower: It’s true in fairness, the analogy is flawed, when you can make as much money going down as you can going up then there really is no bubble, it’s just pathetic that these marketplace antics can’t benefit us all instead of a handful of cowboys. But that’s the crux, some people are really into money, the ‘addicts’ are the winners of the free market.
@thesaltyurchin: I don’t think you get that the people who couldn’t afford before still won’t and only a small amount who could will be affected now. Peoples age is a huge factor and they can’t just wait out price fluctuations as they age out of mortgages. Lots of people want it to be a bubble in hopes they can buy. This is wishful thinking rather than reality.
@Craic_a_towerThe idea that house prices are determined by supply and demand is an infantile view of how the market works. Asset prices in Ireland are very high, because there is a wall of money looking for somewhere safe to land — and property is regarded as a safe asset.
That’s what is hiking prices in Ireland — not supply and demand. You could cover all your land in concrete and prices will still rise, so long as mainly foreign capital is free to invest in finite Irish assets.
Liquidity will at some point dry up, and that will have an impact on house prices. How? Think of how it impacted the US in 2007. In the movie The Big Short, the pole dancer suddenly couldn’t pay her mortgage, because in real terms her wages were falling. So it was people like her who brought down the whole financial system.
That’s the point. People are taking out mortgages, they think everything is fine. But their mortgage rates are rising.
Incomes in Ireland are very high for people in finance and tech. But that is not true for others who are borrowing to buy houses. There comes a point when energy and food inflation eats up more of their income and leaves less for the mortgage. That’s going to happen at some point.
@artur fil: the people who can afford property is high and that remains so. It isn’t a bubble because there is a lack of supply and demand is high. A fundamental that wipes your view away along with banking restrictions brought in after the collapse of the bubble.
@artur fil: Lol! ‘people are taking out mortgages’… you’ve tried in the last decade I take it?. Pole dancers take down global economy, pl ea se.
@thesaltyurchin: he has a point about pole dancers because of what USA banks did before. That eventually lead to the global crash but not really about property here nor the fundamentals of supply and demand. Property crashed here before the economic crash. Different policies here have prevented the same property crash and also restricted supply by not funding development
To the moon
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