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A man looks through the window of an estate agent in Dublin city Sam Boal/Photocall Ireland

Again? House prices in parts of Dublin jump by 12%

Two separate reports into house prices have found prices are still dropping around the country – except in Dublin.

HOUSE PRICES IN parts of Dublin have risen by more than 12 per cent this year – the biggest single increase in prices since early 2007.

The unexpectedly high uptick shows sellers have begun raising their prices following several years of caution after prices cratered following the over-inflated property boom.

However the rising prices are confined to Dublin – asking prices in the rest of the country are down almost 10 per cent compared to this time last year, according to the latest Daft.ie house price report which was released this morning.

Part of the reason for the increase in prices in Dublin is due to supply: the amount of houses for sale in the capital has dropped drastically. There was an average of 6,000 properties for sale in Dublin at any one time between 2008 and 2011, but the figure in 2013 is just over half this (3,170).

“It is likely then, that over the next 12-24 months, we may have to get used to the idea of prices rising in some places – particularly in urban areas – while they fall elsewhere,” said Ronan Lyons, Daft’s property economist.

In a sense, no-one is going to be happy: markets with falling prices are ones where sellers are furstrated and buyers are nervous about ‘catching the falling knife’.
In rising markets, buyers will – just as they did before 2008 – feel like they have less time than they would like for what is one of the most important financial decisions they will make.

The report found asking prices in south county Dublin rose 12.2 per cent in the year up to June 2013, with prices in Dublin as a whole up by 5.3 per cent. Outside of Dublin, prices are down 8.9 per cent, with Cork city seeing a drop of 6 per cent and Galway registering a decrease of 6.6 per cent.

Prices in Waterford city, which has been badly hit by the recession, dropped by 10.5 per cent in the last year. Limerick prices also dropped 10.5 per cent.

Average prices

A separate report published today found the average asking price for a house in Ireland is now €193,000.

The report by MyHome.ie also found that prices in Dublin have risen, but suggested a much smaller increase than the Daft report: it said that asking prices have grown by 1 per cent over the past year which, it said, was the first year-on-year growth in prices in the capital since 2007.

The average house price in Dublin is now €238,000, the report found, while the average amount of time a house takes to sell is six months in the capital. The average time in Limerick is six months while in Cork and Waterford the figure is ten months.

There are currently just over 41,000 properties for sale across the country – the lowest number since mid-2007.

#

Map showing the change in house prices (Image: Daft.ie)

Disclosure: Daft.ie is part of the Distilled Media Group. Journal Media Ltd has shareholders – Brian and Eamonn Fallon – in common with Distilled Media Group.

Read: Property prices down in May, but rate of drop slowing >

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35 Comments
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    Mute Conor Gallagher
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    Jul 1st 2013, 7:23 AM

    Why is the journal quoting asking prices as house prices when there is an register of actual house prices? And can the 12% v 1% differential be explained?

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    Mute Pádraig O'Sullivan
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    Jul 1st 2013, 7:57 AM

    The 12% refers to parts of Dublin, the 1% to all of Dublin from my reading of the article.

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    Mute Pádraig O'Sullivan
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    Jul 1st 2013, 8:03 AM

    Right, from the report here: http://www.daft.ie/report/Daft-House-Price-Report-Q2-2013.pdf

    Asking Price increase for South Dublin: 12.2%
    Asking Price increase for Dublin as a whole: 5.3%
    Property Price Register increase for Dublin as a whole: 2.3%

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    Mute Sheila
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    Jul 1st 2013, 8:46 AM

    Asking prices only increase if the house is expected to get more than it would have 3-6 months ago. It is a sign that people are willing to pay more, even if the sold price is still less than the asking house. I know of a house that was taken off the market after failing to sell for 2 years, with asking price brought down to 395k – best offer was about 320 – now sold (2 weeks after going up again) for 410k, 15k above asking price which was still 395k. 2 people competed for purchase. Previously, nobody was interested.

    11
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    Mute ColindeB
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    Jul 1st 2013, 10:50 AM

    Journal & DAFT are owned by the same parent company. Obvious vested interest there.

    34
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    Mute David Harrington
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    Jul 1st 2013, 6:41 AM

    Wow, better get on that ladder quick.

    132
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    Mute Seamus Donoghue
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    Jul 1st 2013, 7:48 AM

    I wonder who’s cooking the books?

    64
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    Mute CD
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    Jul 1st 2013, 10:45 AM

    They seem to be making some huge leaps considering the small numbers available for analysis. Not to mention that an asking price is not a measure of value. I’ve also heard that some estate agents in the city are paying employees to put ‘for sale’ and ‘sold’ signs in their gardens to give a sense that the market is picking up again.

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    Mute Colin Murray
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    Jul 1st 2013, 11:38 AM

    Now is the time to buy ;-)

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    Mute Lamb
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    Jul 1st 2013, 11:50 AM

    The agents doing all the gazumping

    8
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    Mute John Brennan
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    Jul 1st 2013, 4:50 PM

    “The boom is getting boomier” – Bertie Ahern, 2006.

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    Mute ColindeB
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    Jul 2nd 2013, 12:14 AM

    If you’re “smart & ballsy”.

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    Mute Joan Featherstone
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    Jul 1st 2013, 6:48 AM

    Don’t start this hype again, it’s part of what got us where we are today, only a small part but nevertheless.

    124
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    Mute Flippermac
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    Jul 1st 2013, 6:45 AM

    Sounds like more government bulls##t

    80
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    Mute cooperguy
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    Jul 1st 2013, 7:28 AM

    Haha Daft and Myhome.ie are wings of the government are they

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    Mute Sheila
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    Jul 1st 2013, 8:42 AM

    If only. It just sounds like madness again.

    15
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    Mute rodrigo detriano
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    Jul 1st 2013, 6:48 AM

    You can fool some of the people some of the time!

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    Mute Michael G O'Reilly
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    Jul 1st 2013, 6:45 AM

    More reason to lynch Drumm and all that crew !

    62
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    Mute Aidan
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    Jul 1st 2013, 7:43 AM

    Such utter rubbish. Certain areas may have maintained prices or possibly even risen slightly. On average this is not the case. There is probably increased demand for what is available, in SOME areas.

    One reason is that people are not selling due to the woeful price they will be offered or the negative equity they are already in this there may actually be a shortage in SOME areas.

    Journal stop proliferating this sort of shite to benefit your sister website please.

    60
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    Mute Aidan
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    Jul 1st 2013, 7:45 AM

    “this there may actually” = “thus there may actually”

    Damn spell check

    6
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    Mute Pádraig O'Sullivan
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    Jul 1st 2013, 8:05 AM

    The report says exactly that, some areas have seen an increase, others a decrease. South County Dublin went up by 12.2%, North County Dublin fell by 2.1%.

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    Mute Aidan
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    Jul 1st 2013, 8:23 AM

    Headline is misleading. It’s often what people remember.

    28
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    Mute Pádraig O'Sullivan
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    Jul 1st 2013, 8:48 AM

    No argument there.

    12
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    Mute BadDrivingIreland
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    Jul 1st 2013, 7:02 AM

    Blah blah blah.

    44
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    Mute simonjblake
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    Jul 1st 2013, 8:02 AM

    Before we believe Ronan Lynchs economic prediction. Can we understand his predictions during the boom. Economists save a handful have been exposed as total guess agents since the property collapse in my view.

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    Mute sean de paore
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    Jul 1st 2013, 8:10 AM

    Waterford is the worst city in the country for job creation (lack of same). If the current policy continues another 10% decline is on the cards for this time next year.

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    Mute Paul Horgan
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    Jul 1st 2013, 8:02 AM

    Here we go again
    *sigh*

    18
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    Mute Andrea Rock Massey
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    Jul 1st 2013, 9:15 AM

    There is a definite increase in certain areas for particular size homes. We have been looking for a 4 bedroom house in the Castleknock/Blanchardstown/Clonsilla area but not in the bad areas there. We have no hope of buying now because they are absolutely rising ridiculously. There were so many estates built in Dublin 15 during the boom but most were 3 bedroom or very very small 4 bedroom (you wouldn’t fit a bed in the “box” room). So many people are looking for the older 4 bed houses and there aren’t enough obviously. A friend of mine bought recently and paid 75K over the asking price. The 3 beds in the same area can’t shift but are upping their asking prices because of the demand for 4 beds. The rents in the area have gone so high now too because a lot of people (us included) rent our smaller house out and privately rent ourselves.

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    Mute Aidan
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    Jul 1st 2013, 2:37 PM

    Every true Rocky, in the same boat myself.

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    Mute Pablo
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    Jul 1st 2013, 8:56 AM

    Fool me once…..

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    Mute Eric
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    Jul 1st 2013, 9:18 AM

    I really hope we don’t get suckered into another property bubble now or in the future. Home ownership is bad for society and bad for homeowners as in a recent study it has been correlated with higher regional unemployment, lower resistance to economic shocks, lower labour mobility and longer commuting times.

    Similarly, from a buyer’s point of view, it has all the traits of a really bad investment – poor liquidity, huge debt and no diversification.

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    Mute Stephen Doherty
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    Jul 1st 2013, 11:32 AM

    Now is the time for nama/banks to slowly release their house properties in Dublin. This would moderate the market and raise some steady cashflow even if they take a hit over their boom values.

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    Mute Aj Lonergan
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    Jul 1st 2013, 12:44 PM

    For me this is irresponsible journalism from the Journal. Surely in-light of all the anger that has been created by the bank recordings in the last week, if one thing is learned it’s that we all have to show more responsibility. Why would you chose to publish this PR-driven report when it is likely that there is an headline making motive in it – all it does is drive hype. Leads to a bigger question of reliable, unbiased news in this country.

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    Mute Aidan
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    Jul 1st 2013, 2:37 PM

    +1

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    Mute John Doc
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    Jul 1st 2013, 4:50 PM

    Totally misleading.
    Come on Christine, even the press release headline points out that the rises are in Asking prices!

    3
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