Residential property prices fall by 1.9% in January

Residential property prices fall by 1.9% in January

Residential property prices at a national level fell by 17.4% in the year to January, the latest figures from the Central Statistics Office have shown.

This compares with an annual rate of decline of 16.7% in December and a decline of 10.7% recorded in the 12 months to January 2011.

Residential property prices fell by 1.9% in the month of January. This compares with a decline of 1.7% recorded in December and a decline of 1.1% in January of last year.

In Dublin residential property prices fell by 4% in January and were 21.1% lower than a year ago. Dublin house prices decreased by 4.1% in the month and were 21.7% lower compared to a year earlier. Dublin apartment prices were 18.4% lower when compared with the same month of 2011.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin) fell by 0.7% in January. A similar rate of decline was recorded in January last year. Prices were 15.1% lower than in January 2011.

House prices in Dublin are 55% lower than at their highest level in early 2007. Apartments in Dublin are 59% lower than they were in February 2007. Residential property prices in Dublin are 57% lower than at their highest level in February 2007. The fall in the price of residential properties in the Rest of Ireland is somewhat lower at 43%. Overall, the national index is 48% lower than its highest level in 2007.

There is 1 comment for this article
  1. Paddy the prophet at 9:00 pm

    Dublin house prices down by 21.1% in one year, and that following on three preceding years of decline! Karl Dieter you must surely be coming to the realization that statement such as ‘we are now seeing the bottom of the market’ repeated so often by property commentators are incorrect. Allsop have shown the entrenched local auctioneers how it is done, price property correctly and it sells, simple as that. Anyone who buys a house outside of a free and fair auction is probably paying too much, and possibly hundreds of thousands too much. But as we can see by the sales figures there are very few rich and foolish buyers out there these days.
    The faster prices reach bottom the better, because once that bottom is reached there is more than enough money out there to ensure houses sell in their thousands leading to a huge increase in business for all those associated with house sales, renovations, extensions, decorating, furnishing, etc. etc.

    Over-availability of credit and low building standards result in exorbitant land price, the principle reason for expensive housing. Land prices can be kept low by legally enforcing the construction of passive energy homes of a high minimum standard of construction and room size, combined with a 20% deposit and max 20-year mortgage based on one salary. This works because builders, who can’t charge more for houses, pay less for land.
    Karl Dieter, you and the rest of the Irish property establishment need to accept the truth and help the nation recover by calling for the measures outlined above.
    Best regards,
    Paddy

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