The State and Cuckoo Funds procured up to 42% of new homes on the market last year, according to new CSO figures.
In addition, house prices in Ireland have once again risen, according to the national Residential Property Price index from the Central Statistics Office (CSO). The figures, published on Wednesday, revealed that house prices increased by 6.1% in the 12 months to January 2023.
The median price of a home in Ireland reached €305,000 in the 12 months to January 2023. The lowest median price paid for a dwelling was €151,500 in Longford, while the highest was €630,000 in Dún Laoghaire-Rathdown.
The national Residential Property Price Index increased by 6.1% in the 12 months to January 2023https://t.co/mWJMSUfeVQ#CSOIreland #Ireland #Housing #PropertyPrices #HousePrices #PlanningPermissions #IrishBusiness #BusinessStatistics #BusinessNews pic.twitter.com/FauoE47UPQ
— Central Statistics Office Ireland (@CSOIreland) March 15, 2023
Findings showed that prices in Dublin rose by 4.3%, while prices outside Dublin soared by 7.4%, with the median price of a dwelling purchased in the 12 months to January 2023 sitting at €305,000.
In January 2023, 3,675 dwelling purchases by households at market prices were filed with the Revenue Commissioners, up by 4.4% compared with the 3,519 purchases in January 2022.
The statistics also paint a clear picture when it comes to the difficulties faced by those trying to get on the property ladder in Ireland, revealing that non-household entities snapped by 13,519 dwellings at market prices in 2022. This represents an increase of 15.1% on the 11,749 purchases made by them in 2021.
Non-household entities in the NACE sector K: Financial & Insurance purchased residential dwellings with a total value of €1,562.6 million in 2022, more than in any other NACE sector.
In addition, last year, dwellings with the total value of €356.9 million at market prices were purchased by non-household entities with an address outside of Ireland.
House prices here are now 2.5% higher than their peak during the Celtic Tiger property boom of April 2007. Dublin residential property prices are 7.3% lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 2.4% higher than their May 2007 peak.
However, property prices nationally have increased by 128.5% from their trough in early 2013. Dublin residential property prices have risen by 129.6% from their February 2012 low, whilst residential property prices in the Rest of Ireland are 135.7% higher than at their trough in May 2013.
According to the CSO, the national index has now reached the value of 167.7, which is 2.5% above its highest level at the peak of the property boom in April 2007.
Commenting on the new stats, Viacheslav Voronovich, Statistician in the Prices Division, said:
“Residential property prices rose by 6.1% in the 12 months to January 2023, down from 7.7% in the year to December 2022, and from the high values of 15.1% in the 12 months to February and March 2022. In Dublin, residential property prices saw an increase of 4.3%, while property prices outside Dublin were 7.4% higher than a year earlier.”
Highlighting the increase not only in the capital but across the country, he explained:
“In Dublin, house prices increased by 4.3% and apartment prices were up by 4%. The highest house price growth in Dublin was in South Dublin at 9.8%, while Dublin City saw a rise of 1.3%.
“Outside Dublin, house prices were up by 7.6% and apartment prices rose by 4.8%. The region outside of Dublin that saw the largest rise in house prices was the Border (Cavan, Donegal, Leitrim, Monaghan, Sligo) at 10.1%, while at the other end of the scale, the Mid-West (Clare, Limerick, Tipperary) saw a 6.7% rise”.
The CSO data also includes an in-depth breakdown of how house prices have changed significantly by Eircode in the last decade as well as the number of homes bought in that area.
The most expensive Eircode area over the 12 months to January 2023 was A94 ‘Blackrock’ with a median price of €755,000, while F35 ‘Ballyhaunis’ was the least expensive at €127,500.
Commenting on the property transactions by non-household entities in 2022, Viacheslav added:
“In 2022, non-household entities purchased 13,519 dwellings at market prices, an increase of 15.1% on the 11,749 purchases made by them in 2021. The total value of the purchases by non-household entities in 2022 was €4.6 billion, an increase of 31.8% on the 2022 value.
“Non-household entities belonging to NACE sector K: Financial & Insurance purchased residential dwellings with a total value of €1,562.6 million in 2022, more than in any other NACE sector. Sector O,P,Q: Public/Education/Human Health/Social Work was the second largest buyer, with the total value of dwelling purchases of €1,334.3 million.”
Meanwhile, Trevor Grant, chairperson of the Association of Irish Mortgage Advisors, cautioned that we could see the rate of Irish house price growth increase further – as he called on the Government to ensure it starts hitting targets around housing supply.
“While the rate of house price growth continues to slow, at 6.1% the rate of increase in national house prices is still strong,” he said.
“House price growth outside the capital continues to outpace that of Dublin, which is worrying because many people are now being outpriced in the areas which they had turned to after Dublin house prices climbed beyond their reach”.