House prices see 12 per cent rise in year to May

The Residential Property Price Index, published by the Central Statistics Office (CSO), indicates that house prices have risen by 77.7 per cent since the trough of early 2013.

In May, house prices were up 12.4 per cent compared to 13.5 per cent in the year to April and rose 10.9 per cent in the year to May 2017.

Dublin saw residential property prices jump by 10.7 per cent in the year to May, with house prices up 10.3 per cent and apartments up 13.5. per cent over the same period.

Dublin city experienced growth of 14.6 per cent while, in contrast, south Dublin saw prices rise by only 6.6 per cent.

In the rest of Ireland, residential property prices were 14.6 per cent higher in the year to May, with an upswing in prices of 13.7 per cent over the same time.

In the mid-west region, growth was the strongest at 22.1 per cent while in the border region price growth stood at only 3.7 per cent.

Apartment prices in the rest of Ireland saw a 15.5 per cent increase in the same period.

Pat Davitt, chief executive of the Institute of Professional Auctioneers, said the slowdown in inflation in south Dublin shows that supply is affecting the rate of inflation.

“However, the substantial drop in inflation in the Border region from 9.3 per cent in April to 3.7 per cent in May is clearly linked to Brexit and the adverse impact the uncertainty is having on confidence in the region.

“I expect that the current trend we’re seeing of a slowing in Dublin and a pick-up elsewhere is set to continue but there is a myriad of factors at play, as we’re seeing, including also more second-hand stock being released,” he added.