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Irish property prices show slowest increase in six years

The latest figures from June show Irish property price growth is slowing.

Image: Sam Boal/RollingNews.ie

IRISH PROPERTY PRICES have risen by their slowest rate in six years, according to new figures from the Central Statistics Office (CSO). 

Property prices were 2% higher in June compared to the same month 12 months ago – a smaller increase than the 2.6% rise recorded in the year to May and the 3% rise recorded in the year to April. 

In Dublin, residential property prices rose by 0.1% in the year to June, with the largest price increase found in south Dublin, where prices rose by 3.6%. 

Beyond Dublin, residential property prices in Ireland were 3.9% higher in the year to June. 

House prices in the border region saw the largest rise of 14.7%. 

“A steady and sustained increase in supply has undoubtedly contributed to slower Irish property price inflation of late both by increasing accessibility directly and lessening ‘panic buying,” KBC bank said, commenting on the figures. 

However, the bank noted that this was not the “dominant” factor and pointed to the fact that there has not been an acceleration in the rate of house purchases. 

“With borrower behaviour constrained by lessons from the previous downturn as well as lending limits, the scope for property price inflation to outrun income growth looks to be exhausted,” the bank added. 

The uncertainty over Brexit was also named as a factor. “Unless concerns about Brexit and other significant downside risks to Irish economic prospects fade, this may act to dampen property price inflation further in coming months,” KBC said. 

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