THE RECOVERY IN property prices continued unabated last year, with prices up over 16% across the country according to a new study.

The results from real estate agents Sherry Fitzgerald show that prices in Dublin were up 18% on 2013.

Prices rose 2% in the fourth quarter of 2014, bring yearly growth to 16.3%.

The study also found that:

• Dublin house prices rose by 1.2% in the fourth quarter of the year, this brings the growth in the year to 18.0%.
• When Dublin is excluded from the national figure, the quarterly growth figure was 3.2%.
• Residential property outside Dublin was up 13.9% in the twelve months to end December 2014.
• Cork had price inflation of 17.9% in the twelve months to the end of December.
• Owner-occupation still dominates the purchaser profile at 77%, while investors now account for 16% of all purchasers.
• First time buyers remain relatively active, accounting for 17% of the properties traded in the year, though this is down from 20% in the same period in 2013.

Marian Finnegan, Chief Economist with Sherry FitzGerald said; “2014 was undoubtedly a fragmented year for the Irish property market.  For the Dublin market the year opened to very tight supply and pent- up demand resulting in buoyant price inflation, of 12.6% in the first six months.  That said, an increase in supply and a more temperate demand outlook saw price growth rates effectively half in the latter six months with overall growth for the year coming in at 18%”

Around 40,000 homes were sold in 2014, the report says.

It adds that 2015 will be “a more challenging year to predict for many reasons”, highlighting the recent intervention by the Central Bank on earnings and deposits.

Prices are expected to continue to rise, as are rents.

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