Source: Noel Baker, The Irish Examiner
New house price figures show a steadying in the cost of property, but brokers said it did little to encourage aspiring buyers.
The Central Statistics Office’s Residential Property Price Index showed residential property prices rose by 8.4% in the year to October 2018, compared with an increase of 11.7% in the 12 months to October 2017.
Residential property prices in Dublin rose by 6.3% in the year to October, with the highest house price growth in the capital in Dún Laoghaire-Rathdown at 8.2%.
Outside Dublin, national residential property prices were 10.6% higher in the year to October. The Mid-West experienced the largest rise at 21.5%.
Brokers Ireland director of financial services Rachel McGovern said: “Those who want to buy and who do not have substantial family support in acquiring a deposit, particularly in city areas, are being forced into renting where rents have spiralled way beyond what mortgage repayments would be for the same properties, sometimes double.
“Alternatively, they are depending on the kindness of family and friends to provide accommodation, where they can.”
Eamon Hetherington, director of property developers GPD, said the cost of land was also a contributory factor.
“Prices are still increasing, albeit at a slower rate,” he said. “But the delivery of new housing stock is not increasing in line with these rises.
“At the end of the day, the price of land is still too expensive. The cost of providing essential services to sites, coupled with increasing material and labour costs, continue to drive up the price of the much sought after and much-needed family home.
“The cost of land is slowing development, both in terms of the base cost of the land, and the cost of bringing services to the site.”
Prices nationally have increased by 83.8% from early 2013, with up 98% from their February 2012 low.