We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Jim McDougall
door to door

People are suddenly being asked to pay a lot more for houses outside Dublin

But in the capital there has been a drop in advertised prices.

ASKING PRICES FOR homes in Ireland’s cities outside Dublin have leapt over the past three months.

The latest house price report from 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.

Daft Daft

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.

Daft Daft

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.

Daft Daft

Click here for a larger version

This is how the various property markets stacked up in the latest report:

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%


Click here for a larger version

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.

Daft Daft

Click here for a larger version

“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.


Click here for a larger version

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 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 publisher Distilled Media Group.

READ: Craft beer is bringing 250 new jobs to Kildare >

READ: Longboat Quay residents will still have to find ‘€2 million’ for repairs after final offer of help >

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.