Residential property prices in the Republic increased 9.4 per cent in the 12 months to November, the latest official figures indicate, reflecting ongoing shortages in the supply of homes.
The rate eased slightly from a rise of 9.7 per cent recorded in the year to October.
In response, the Institute of Professional Auctioneers & Valuers (Ipav) warned that prices could rise by a further 10 per cent this year unless there is a significant increase in supply.
“Agents are reporting strong prices with competing buyers in a limited market continuing to push beyond asking prices, particularly in high demand areas,” said Ipav chief executive Pat Devitt.
The national residential property price index, published by the Central Statistics Office (CSO), found that prices in Dublin rose 9.6 per cent, with prices outside Dublin up 9.2 per cent.
Within this, house prices in the capital climbed 9.9 per cent and apartment prices were up 8.3 per cent. The highest house price growth in Dublin was in Dublin city at 11.7 per cent, while Dún Laoghaire-Rathdown saw a rise of 6.9 per cent.
Outside Dublin, house prices rose 9.5 per cent and apartment prices increased 5.8 per cent. The region outside of Dublin that saw the largest rise in house prices was the Border (Cavan, Donegal, Leitrim, Monaghan, and Sligo) at 13.8 per cent, while at the other end of the scale, the mid-east (Kildare, Louth, Meath, and Wicklow) saw a 6.5 per cent rise.
In November 2024, some 4,443 dwelling purchases by households at market prices were filed with the Revenue Commissioners, a total that is down 3.8 per cent on the number of purchases in the same month the year before.
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The median price of a dwelling purchased in the 12 months to November 2024 was €350,000. Across the country, the lowest median price was €180,000 in both Leitrim and Longford, while the highest median price was €654,999 in Dún Laoghaire-Rathdown.
The most expensive Eircode area over the 12 months to November 2024 was D06, or Dublin 6, with a median price of €725,000, while H23, which is Clones, Co Monaghan, had the least expensive price of €127,000.
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Dublin residential property prices are now 4 per cent higher than their February 2007 peak, while residential property prices outside Dublin are 16.7 per cent higher than there May 2007 peak.
“While the rate of annual house price growth has eased slightly, at 9.4 per cent nationally, it is still very high. Given this steep house price inflation, all eyes will be on the new Government to see if it can tackle this country’s seemingly insurmountable housing crisis and it if can deliver on its promise to deliver 300,000 homes by the end of 2030,” said Trevor Grant, chairman of Irish Mortgage Advisors.
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“The new Government will need to do its utmost to reach these targets and to make housing more affordable for the many who are priced out of the market. More supply will ultimately make more homes available to would-be buyers, while also keeping the rate of house price growth in check.”
Further moves by the European Central Bank to lower interest rates are also likely to fuel house price growth, as lower rates will encourage more buyers into the market. The ECB is widely expected to announce another cut to interest rates at the meeting of its governing council next week.
“It’s beyond time for talking about housing targets, all people want to know about now is how new homes are going to be delivered,” said Rachel McGovern, deputy chief executive at Brokers Ireland.
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