Property price inflation surges 73pc in a year

PROPERTY price inflation across the country is escalating at a pace that is 73pc faster than it was last year.

Ominously, the latest State-published data reveals that property prices are up by 12.3pc in the 12-month period to July.

This compares with a hike of 7.1pc recorded in the previous 12-month period to July 2016.

By the month, the pace of property inflation is now ratcheting up steadily, with an 11.5pc increase registered across the country four weeks earlier for the year to June 2017. The figure was lower again for the 12 months to May, at 10.9pc. According to CSO data just published, Dublin residences (both houses and apartments) are up 12.7pc to July.

The highest growth in the capital was experienced in the city centre, which registered a 13.6pc increase compared to Fingal’s hike of 7.4pc, perhaps reflecting better supply in this part of the city.

When Dublin data is excluded, prices in the rest of the country are up by an average of 11.7pc.

Elsewhere, the west of Ireland showed the strongest property price increases with house prices moving up by 15.8pc. In contrast, the mid-west region, which remains economically depressed in many parts, had much lower growth – house prices increased there by 8.2pc. The State statistics have followed a report by Sherry FitzGerald showing that the housing supply situation continues to worsen. The number of housing units for sale in the State fell 9pc to 25,100 in the year to July. This equates to just 1.3pc of the State’s total private housing stock. In a “normal” market, this figure would be closer to 6pc. The number of homes for sale represents a drop of more than 50pc on the 53,900 units advertised in the same period to July back in 2010.

The estate agency network said the stock of properties available for sale was now “critically low” in all urban areas, and this would “inevitably fuel further property price inflation”.

Meanwhile, a report from the Central Bank asserts that one in 10 homeowners are still in mortgage arrears.

To July there were 732,439 private residential mortgage accounts for principal dwellings held in the Republic of Ireland, to a value of €98.7bn. Of this total, 73,706 accounts were in arrears. However, this represents a fall of 3.6pc over the quarter. Some 51,750 accounts (7pc) were in arrears of more than 90 days.