Pace of property price rises picks up with values up for sixth month in a row

The output of new homes has increased but not fast enough to stop prices constantly rising.

Charlie Weston

Property prices increased again in February, in what was the sixth month in a row of rising homes costs.

Prices were up by 6.1pc in the year to February, according to the Central Statistics Office (CSO).

This is up from a rise of 5.4pc in the year to January.

This means the pace of property price rises has picked up.

In Dublin, prices rose by 5.6pc, and prices outside Dublin were up by 6.5pc, the CSO said.

The strong increase in property prices nationwide over the last year is in spite of a fall of 0.3pc in the month of February.

Prices rises are being turbo-charged by a lack of properties to buy, and by the State support schemes for buyers, particularly the Help-to-Buy scheme and the shared equity First Home scheme.

Residential property prices of new dwellings in the last three months of last year were 9.2pc higher than in the same quarter of 2022.

Prices of existing dwellings in the fourth quarter of 2023 were 1.6pc higher than in the corresponding quarter of 2022.

The CSO only produces price indices for new and existing dwellings on a quarterly basis and at the national level only.

In February, some 3,327 homes purchases by households at market prices were filed with the Revenue Commissioners.

This was down by 0.7pc when compared with the 3,351 purchases in February last year, the CSO said.

The median (or typical) price of a dwelling purchased in the 12 months to February was €330,000.

The lowest median price for a dwelling in the was €165,000 in Leitrim, while the highest median price was €620,000 in Dún Laoghaire-Rathdown.

The most expensive Eircode area over the 12 months to February was in Blackrock, South County Dublin, with a median price of €715,025.

Castlerea, Co Roscommon, had the least expensive price of €135,000.

CSO statistician Niall Corkery said: “Residential property prices rose by 6.1pc in the 12 months to February 2024, up from 5.4pc in the year to January 2024.

“In Dublin, residential property prices saw an increase of 5.6pc, while property prices outside Dublin were 6.5pc higher in February 2024 when compared with a year earlier.”

The national index has now reached the value of 177.6, which is 8.5pc above its highest level at the peak of the property boom in April 2007.

Dublin residential property prices are 2.6pc lower than their February 2007 peak, while residential property prices in the Rest of Ireland are 9.1pc higher than their May 2007 peak.

Property prices nationally have increased by 142pc from their trough in early 2013. Dublin residential property prices have risen by 141.2pc from their February 2012 low.

Residential property prices in the Rest of Ireland are 151.1pc higher than at the trough, which was in May 2013, the CSO said.