House prices drop in country’s richest area

THE average price of a house went up by just €7,000 over the past year, the latest official figures show.

However, houses in the richest district in the country fell by more than 6% in the past 12 months, according to the CSO’s Property Price Index released yesterday.

Experts have blamed the sharp slowdown in the property market on the Central Bank’s lending rules restricting how much people can afford, as well as worries about the outcome of Brexit on the economy.

The average price of a home is now €305,346, up almost €7,000 on the average a year ago of €298,659.

Savills estate agents’ director of research Dr John McCartney said ‘affordability’ was a factor in a drop in prices in the Dún Laoghaire/ Rathdown district of south Co. Dublin, the country’s most expensive area to buy a home.

‘What you’re dealing with is the most expensive housing product in Ireland. We’re only looking at houses and they’re located in the most expensive market,’ he said.

Property Industry Ireland director David Duffy said the drop in prices in prime areas could be because of buyers holding off due to Brexit.

‘There’s been some caution at the higher end of the market that is also Brexit-associated, as there’s uncertainty around what’s happening and people don’t like uncertainty and that’s probably caused a bit of caution,’ he said.

Economist Austin Hughes, of KBC bank, said: ‘With economic uncertainty, notably increased of late on foot of major Brexit-related worries, the likelihood is that the Irish property market, like the broader economy, faces a bumpy period ahead.’

Prices outside Dublin were up 4.4% in the year to August, with house prices up by 4.1% and apartments by 5.3%.

The fastest-growing area for prices were the border counties of Cavan, Donegal, Leitrim, Monaghan and Sligo, where prices are up more than 13% in the year to August.