House prices in Dublin moderated in the third quarter of 2003 indicating a gradual slowdown in the property market after sharp rises earlier, according to the latest analysis by auctioneers Douglas Newman Good.
The DNG House Price Gauge (HPG) recorded an increase in the average price of second hand houses in Dublin of 4.8 per cent during the period July to September 2003. In the first two quarters of 2003 house prices rose by 6.5 per cent and two 7.1 per cent respectively.
Douglas Newman Good said in its report that an increase in supply, coupled with a tapering off of the effects of last year's Budget points towards "sustained but more moderate growth" in the short term.
The average price of a second hand property in Dublin has increased to €306,207 at the end of September, compared to an average price of €292,147 at the end of June.
The latest results mean that in the twelve months to the end of September 2003, prices have risen by 17 per cent, a strong rebound in the Dublin market following a turbulent period in 2001.
The average price of a house in Dublin's northside has risen to €298,405 while the average for the southside is €380,427 at the end of September.
The report shows that demand for good quality family homes in the middle to higher end of the market, which suffered most last year, continued to be strong in quarter three, especially for property close to new and established transport links or within walking distance of the city centre.
The report concludes that a fall in house prices is unlikely given the current low interest rate environment and relative scarcity of second hand houses.