The average price paid for a home in Ireland rose to €310,641 in the year to July, the latest figures from the Central Statistics Office (CSO) show.
Residential property prices increased by 8.6% nationally over the previous 12 months, compared to growth of 0.7% in the 12 months prior to last July and up from 6.9% in June.
In Dublin, house prices rose 8.1% year-on-year to a mean average of €479,454, rising to €649,916 in Dun Laoghaire-Rathdown, with prices up 9.1% outside the capital, most expensive in Wicklow €412,396.
‘In the period before COVID-19, the annual growth in residential property prices fell gradually from 13.4% in April 2018 to 0.9% in March 2020,’ CSO statistician Viacheslav Voronovich said.
‘While price growth remained subdued throughout most of 2020, a trend of accelerating growth emerged in the latter part of the year and into 2021.’
House prices nationally are still 10.7% lower than their 2007 peak, with the Dublin market 16.5% off highs posted in February 2007 and the rest of Ireland 13.1% below the May 2007 record.
Since early 2013, house prices nationally have nearly doubled (+99%), rising 106.8% in Dublin from their February 2012 low and 100% in the rest of Ireland since May 2013.
The volume of property transaction in July rose 49.2% year-on-year and 10% month-on-month, with 3,822 purchases filed with the Revenue in July compared to 2,561 the same month last year and 3,473 in June.
The total value of transaction finalised in July was €1.3 billion, with existing dwellings (3,221) accounting for 84.3% of purchases and new homes (601) representing just 15.7%.
First-time buyers made up just under a third (32.3%) of purchasers in July, and MyMortgages.ie head of credit Joey Sheahan said ‘their share of the market will continue to grow’ if the Help-to-Buy Scheme is extended in next month’s Budget.
He added that rising transaction numbers were ‘hopefully’ a sign of greater construction output.
Brokers Ireland director of financial services Rachel McGovern said that double digit growth in some area was ‘unhealthy for potential buyers and the economy at large’.
‘With the exception of the release valve presented by new blended working arrangements that would appear to have increased the appeal of areas like the South-East and the Midlands, which are seeing an 11% increase in prices, home ownership in the most populous areas of Dublin and its environs has largely become the preserve of those on higher incomes or those with strong financial support from family,’ she said.