RESIDENTIAL PROPERTY PRICES have increased by 9.6% in the last 12 months according to new data from the Central Statistics Office (CSO).

The cost of a home in Dublin increased by 10.3% since July 2023 while property prices outside of Dublin increased by 9.1% since the same period.

It is the highest national year-on-year increase rate recorded by the CSO since the previous peak in early 2007, according to the latest Residential Property Prices Index report.

In the last 11 years, national property prices have increased by more than 150% percent. If the current year-on-year increase continues, prices could double in less than 10 years.

According to Ian Lawlor, the managing director of private equity firm Roundtower Capital, said the boom in prices is because the country is not building enough houses: “The huge mismatch between housing supply and demand is driving up house prices.

“We are simply not building enough houses and this mismatch is compounded by the dramatic decrease in the supply of second-hand homes for sale over the past decade,” he added.

In Dublin, the price of a house are up 10.9% and apartment prices increased by 8% in the last year. Outside of the capital, house prices are up by 9% and apartment prices increased by 10.6%.

Clare, Limerick and Tipperary saw the largest increases outside of Dublin, with overall property prices increasing by 13.4% on average. 

According to estimates published today by the Central Bank, around 52,000 new homes must be built each year in order to keep up with demand and – hopefully – drive down prices.

The target number is 20,000 more than current figures by the Government and 2,000 more than what has been promised by the Taoiseach over the next five years.

Speaking to reporters this morning, Simon Harris said Ireland is spending more and more on housing to “catch up” with demand. He suggested that funds from Apple’s unpaid taxes and profits from the State’s bank shares could be used to help.

“The report does show serious pent up demand in terms of housing in this country. That doesn’t come as a surprise to anybody, but it does make me all the more determined to look at how we can further support agencies and work that we know is working,” he said.

On today’s figures Rachel McGovern, the deputy chief executive of financial and insurance workers’ representative body, Brokers Ireland, said the Government needs to improve delivery.

She called on the Government to establish a Housing Delivery Oversight Executive, recommended in the recent Housing Commission report, so the coordination of the construction and completion of housing can be improved.