The CSO released the May 2016 figures relating to residential prices today. Focusing on the Dublin index, the data shows that residential prices increased by 0.1% in the month and by 4.8% in the past year.
Commenting on the results, David Byrne, Director of Residential at Lisney said:
“Today’s figures from the CSO on residential prices are slightly ahead of our own Lisney index, which is relatively flat for Q2 and close to 1% up on June last year. In recent months, we have found in the parts of Dublin that we operate in that there are three very different markets. There is the first-time buyer market, which is reasonably active. Then there is the mid-market, which is sluggish as buyers struggle with various obstacles such as the Central Bank’s rules and strongly priced properties that do not reflect their affordability. And at the upper-end of the market, there is demand for luxury homes, but it is very price sensitive and to an extent, location specific. This is also a market that is driven by cash buyers who are not constrained by bank finance.”
“It is interesting that the CSO index shows Dublin apartment prices falling, by 2.8% in the past year. While residential supply is constrained across all Dublin locations and property types, it has become very notable in the past year that there is an acute shortage of sizable apartments that meet the needs of those considering trading down. This is partly the reason why people quite often find it difficult to part with their family home even though it has become too large for them. Where apartments are ticking all the boxes in terms of size, location, quality and parking, we are seeing strong demand and very good prices being achieved.”