HOUSE PRICES HAVE increased again and are now approaching the peak reached at the height of the Celtic Tiger.

Residential property rose by 14.4% nationally in the 12 months to December 2021, the 14th consecutive month of growth in the market.

The Residential Property Price Index for December 2021, which was published today, shows that home prices outside Dublin were 15.4% higher in the year to December, while prices in the capital rose by 13.1%.

The increases are a further uptick on what was recorded for November and prices have now climbed to nearly 90% of the heights reached in 2007, the peak of Ireland’s property boom.

The new data released by the Central Statistics Office (CSO) shows that Dublin house prices increased by 13.5% while apartment prices rose 11.3%.

Outside Dublin, house prices rose 15.3% and apartment prices increased by 16.9%.

The region outside of Dublin that saw the largest rise in prices was the Border, where a 23.7% jump was recorded. At the lower end of the scale, the Mid-West saw a 12.1% rise.

The statistics show that the median, or mid-point, price of a home purchased in the 12 months to December 2021 was €280,000. In Dublin the median price was €405,500.

Central Statistics Office Central Statistics Office

The lowest median price for a house was €130,000 in Longford, while the highest median price was €595,00 in Dún Laoghaire-Rathdown.

The month saw 5,170 dwelling purchases filed with Revenue, an increase of 3.6% compared to December 2020. Existing dwellings accounted for 78% of the purchases filed, the rest were new homes.

Sinn Féin housing spokesperson Eoin Ó Broin said the figures show that the government has lost control of house price inflation.

“The government does not have a handle on soaring house prices. House prices are almost at their Celtic Tiger peak – the last time Fianna Fáil was in government.

“According to the CSO data, the median new build house price for first time buyers across the State is now €360,000. That is scandalous,” Ó Broin said.

“As a result of government policy, ordinary people on good salaries cannot afford to buy a home.

“Instead of prioritising investment in affordable homes to rent and buy, the government are content with maintaining the status-quo and shouting about supply. The reality is that they will only deliver 400 affordable purchase homes this year,” he said.

Trevor Grant, chairman of the Association of Irish Mortgage Advisors, said inflation is impacting a broad spectrum of goods and services, and property prices are no different.

“While the growth in property prices remains strong, we would expect this to slow as the year progresses.

“This is due to the anticipated increased supply coming on stream, and the Central Bank’s Macro prudential rules kicking in, as exceptions potentially diminish or become harder to obtain, and borrowing power is reduced accordingly,” Grant said.