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RESIDENTIAL PROPERTY PRICES have increased by 9.6% in the last 12 months according to new data from the Central Statistics Office (CSO).
The cost of a home in Dublin increased by 10.3% since July 2023 while property prices outside of Dublin increased by 9.1% since the same period.
It is the highest national year-on-year increase rate recorded by the CSO since the previous peak in early 2007, according to the latest Residential Property Prices Index report.
In the last 11 years, national property prices have increased by more than 150% percent. If the current year-on-year increase continues, prices could double in less than 10 years.
According to Ian Lawlor, the managing director of private equity firm Roundtower Capital, said the boom in prices is because the country is not building enough houses: “The huge mismatch between housing supply and demand is driving up house prices.
“We are simply not building enough houses and this mismatch is compounded by the dramatic decrease in the supply of second-hand homes for sale over the past decade,” he added.
In Dublin, the price of a house are up 10.9% and apartment prices increased by 8% in the last year. Outside of the capital, house prices are up by 9% and apartment prices increased by 10.6%.
Clare, Limerick and Tipperary saw the largest increases outside of Dublin, with overall property prices increasing by 13.4% on average.
According to estimates published today by the Central Bank, around 52,000 new homes must be built each year in order to keep up with demand and – hopefully – drive down prices.
The target number is 20,000 more than current figures by the Government and 2,000 more than what has been promised by the Taoiseach over the next five years.
Speaking to reporters this morning, Simon Harris said Ireland is spending more and more on housing to “catch up” with demand. He suggested that funds from Apple’s unpaid taxes and profits from the State’s bank shares could be used to help.
“The report does show serious pent up demand in terms of housing in this country. That doesn’t come as a surprise to anybody, but it does make me all the more determined to look at how we can further support agencies and work that we know is working,” he said.
On today’s figures Rachel McGovern, the deputy chief executive of financial and insurance workers’ representative body, Brokers Ireland, said the Government needs to improve delivery.
She called on the Government to establish a Housing Delivery Oversight Executive, recommended in the recent Housing Commission report, so the coordination of the construction and completion of housing can be improved.
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We haven’t tarred and feathered our politicians in a while and it really shows. Just remove foreign investment firms from the Irish housing market and see the problem slowly but surely go away. Any politician that is currently benefitting should be tried for treason and punished accordingly. I’m so sick and tired of the status quo and the waffling.
Would love to know how many Vulture-Owned Homes there are. Non-residents shouldn’t be allowed to swallow-up our properties and limited resources, pushing up prices.
@9QRixo8H: Easily done, simply set up a company in Ireland and have majority of directors Irish and resident , company is as Irish as any citizen.
@9QRixo8H: Indeed, and non-Irish shouldn’t be given properties at taxpayers expense when many of our own working population cannot get homes to reasonably buy or rent.
@9QRixo8H:
This problem increased after the
crash,when the sales were on.
Vultures were allowed to swoop in and buy up properties.
The bigger picture,and long term fall out was ignored.
Houses,hotels,stately homes,all sold for quick cash.
@D. Peado: swift move from left wing malcontent communist to right wing malcontenr nationalist. Who know you could multi task?
@Kunibert Ritter: treason ?? Go back to 1872..
@9QRixo8H: vulture funds refer to buying distressed assets and then selling them on at a higher price. The assets they bought weren’t distressed. You are using the term Incorrectly
@Mary.E.: you are suing the term vulture fund incorrectly. Please learn what it means be for using it
@Paul O’Mahoney: I think you’re really naive if you believe that an Irish owned company would behave in a different way.
Do Irish landlords charge less for rent, even if the house\apartment is paid off for decades?
It would make zero difference who’s the owner.
@Wolfgang Bonow: I think you are misunderstanding my post or at least the context of my post, it was a reply to foreign owners and how they can register an Irish company.
You’d better learn to read before sending out the insults
@Paul O’Mahoney: I stay to my comment, it does not matter.
The construction companies\builders charge as much as they can.
Anyone buying the houses or apartments for rental will do exactly the same.
The minimum they charge is to cover the cost + some profit – nobody is doing it for free.
Building costs have gone up and most likely, even more the mark-ups for sale.
To make an impact, you would need to reduce the cost of producing the “home”.
The builders are all international by now as well. Good luck to get anything done for less.
So, where do you want to start?
If by some means, you archive to get houses or apartments significant cheaper to the market, existing home owners will go up in their arms, because the Irish are used to the fact, that there’s only one way of the prices\value, and that is up.
You can take out all the “vulture funds”, with is a wrong term for the lending companies, it wouldn’t matter, unless you put some major restriction on the buyer.
E.g.: You have to buy it as a family home for x-amount of years, no rent-out allowed.
Otherwise, you have the “Irish” landlords, small or big, jumping in and buying the same properties and rent them out at a high price.
The bulk buying of Ires Reit and the others are adding to the problem, no doubt. Removing them won’t solve anything.
@Ciaran: ah yes because treason disappeared with the introduction of sliced bread. These people are paid by us to represent us and represent ours, not their best individual interests. Any politician that swore to represent the people of Ireland but actively works against it is guilty of treason. The end
Housing as speculative investment is an obscenity.
Perhaps house prices should be constrained to do no more than follow the inflation rate.
@Steve O’Hara-Smith:
Unfortunately all that would happen is the builders and skilled trades would just move on to whatever country allows the best profits.
Construction is global now, just like every other business.
Dastardly and Muttley are at the wheel ..
Look at that absolute hack of a so called minister in the photo. No wonder FF are are on the slide. Just deserts!
just work remote, get an irish salary and move abroad to a cheaper country, preferably southern europe where the weather is nicer. 600 euro rent for a three bed apartment in south of france, 125k to buy same apartment, 20 minutes from the beach and meditteranean and 90 minutes drive from barcelona.
@Niall English:
If it works it would be great. I have a niece doing something similar with her partner but after the explosion in numbers working remotely during and post pandemic I see a slow reduction in the number of jobs where that’s possible.
I note Amazon are going 5 days in the office now.
@P. J.: if your organisation values you enough they will accomodate a request for remote working to prevent you from leaving to a competitor.
@Niall English:
A big if….
Like I said it will work for some (my niece included)and best of luck to them but I think the opportunities will be limited.
Homes will be for the haves, while Simon Shantytowns for the have-nots. No political will to solve housing after nearly 15 years.
@9QRixo8H: Don’t forget the Greens party leaders promise of housing for all (all the world). Let’s not pretend that this doesn’t filter into the long term demand and cost of housing and that ordinary young workers aren’t paying the price.
@9QRixo8H: housing crises in pretty much every developed nation from US and Canada to France and Germany and Australia . Must be the Irish govt fault though
@Ciaran: Hi Micheàl….
Great news of you own or sell property. Terrible news if you want to buy.
@common sense: how? if you sell you have to buy somewhere else to live. unless you are downsizing which is only a small fraction of the market.
@Niall English: I’m tempted to sell up
And emigrate. My house have doubled in value in the last 10 years, this money is worth a lot more abroad.
@Freda Peeple: depends how you calculate doubling in value. if you buy a house for 500k, 50k deposit, 450k mortgate at average interest rate of 3% for 30 years, your paying 850 to 900k for the house. before you put in property tax and generally upkeep and renovations etc. so factor that in, probably put 1.1 million into the house. i highly doubt anyone buying a house for 500k now will realise 1.1. million on the sale of it.
@Niall English: True enough, anyone buying now will probably see a price stagnation or find that the house is worth the same in 20 years time from now. I bought a fixer upper 10 years ago so it was fortunate timing and I did the work myself.
My granny bought her house for €5000 in the 50’s and sold for €800k after her death. On that basis my 250k house will be worth €350 million when I’m dead…
@Niall English: House prices were rock bottom in 2011. She said it’s doubled in value in the last 10 years. It’s safe to say she’s a relatively small mortgage compared to what’s needed today if she bought around 2014. I’d assume she’s done the maths and she’ll be up a lot of money if she’s thinking about selling and emigrating. And with the prices back then a 30 year term wasn’t needed cutting down on a lot of interest.
@Freda Peeple: Your money is worth the same abroad since it’s the same situation everywhere. Australia, Canada… Canada has it even worse. Housing is now unaffordable pretty much everywhere in the developed world.
@Freda Peeple: definitely buy in Albania you will have a lovely huge mansion and will be worth triple what you pay in a few years. Great place
Every new apartment block built is owned by investment firms. All fully finished in the same styles, let for at least 3k per month in Dublin. Beyond most people’s means. They will remain empty due to this greed.
@Basildon Joe:
I highly doubt they will remain empty.
When there are so few available there is always a select few customers who can afford those high prices.
@P. J.: but the majority PJ will be vacant. Some of them.empty a while now like the offices
It’s all smoke and mirrors.
~Stop foreign direct investment in residential property.
~Put a a real punitive tax on empty properties, at a level that is higher than the annual increase in asset price inflation (exempt people in nursing homes but everyone else pays.
~A massive amount of renters are renting because they can’t buy because of unavailability or prices being pushed up. Leave landlords at current taxation levels but increase tax on capital gain when they sell, they are making a killing, ignore the BS about them leaving the market, a few are who were accidental landlords. 4 bed semi in Drogheda 10 years ago 1000 euro pm max, today 2500 euro pm min, and asset has doubled in value, 200k to nearly 400k, making out like bandits.
Will any of this happen, no because to many td’s or close associates of td’s are landlords.
While many are silently happy their house prices is increasing, your kids are f&ck_d and it is also driving up the cost of living so you are too, wise up , you’re being conned
Aww The Journal didn’t like me commenting on the dear minister so they change the photo. Poor things.
Dirty secret: It is not in the interest of banks that prices stabilise or go down.
But we all love market capitalism!
Great , brilliant news
Great for you, but what about your children, and your children’s children?
@9QRixo8H: They will have plenty of my money to start in life. Some are luckier than others unfortunately.
@D. Peado: This malcontent worried about others? He had high praise for his hero Xi Jinping and his treatment of the poor misfortunate Uyghurs last week. Just another pair of hands, extended, looking for a handout.
Good news from my perspective but not great for others. Such is the way of the world, I guess!
Disgusting
How about getting rid of local needs. Sites available all across the country people could build on but are not allowed because they haven’t been part of the local GAA club and are 5.1km away from where they grew up.
Good news for all
No one can solve the affordable housing crisis until the Referendum on Housing is passed.
First proposed in 1974 but blocked by FF.
It would have prevented the 2008 property bubble and crash …
Your kids are being used and abused. Your only weapon is your vote.
have your say