Property prices continuing to rise by more than 7% despite lending rules
Property prices in Dublin and elsewhere are continuing to rise at a significant rate despite the Central Bank’s lending restrictions.
The latest Residential Property Price Index (RPPI) showed prices nationally rose by 7.1 per cent in the year to October, moderating slightly from the 7.6 per cent recorded in September.
The monthly increase in prices was, however, softer than in previous months.
In Dublin, where supply shortages are most acute, prices were up 0.7 per cent in October and by 5.5 per cent on an annual basis.
The highest house price growth was in Dublin City, at 7.5 per cent. In contrast, the lowest growth was in Fingal, with house prices rising just 3.4 per cent.
Residential property prices in the rest of the country, excluding Dublin were 10.2 per cent higher in the year to October.
The Midland region showed the greatest price growth, with house prices increasing 16.6 per cent. Conversely, the Mid-East region showed the least price growth, with house prices increasing 6.1 per cent.
While the Central Bank’s macro-prudential rules, which were recently eased, tempered the market somewhat, demographic pressures combined with supply issues have kept prices on an upward curve.