House prices continue to rise
The property market is showing no signs of cooling, with prices rising 13 per cent year-on-year in February. This compares to an annual increase of 12 per cent in January.
The latest official figures from the Central Statistics Office (CSO) appear to be at odds with recent reports from property websites MyHome.ie and Daft.ie, which both reported a slowdown in headline inflation.
The CSO figures show annual price growth in Dublin, where supply pressures are most evident, is now running at 12.7 per cent, the highest level in nearly three years.
They also indicate prices in Dublin have risen by over 90 per cent since the low point of the crash, and are 23 per cent off their 2007 peak value. The highest house price growth in the capital was in Dublin City, at 14.2 per cent. In contrast, the lowest growth was in Dún Laoghaire-Rathdown, where house prices increased 9.6 per cent year-on-year.
Property prices in the Republic, excluding Dublin, were 13.3 per cent higher in the year to February.
The midlands region recorded the greatest level of price growth, with house prices increasing 14.8 per cent, while the southeast recorded the lowest level growth, with house prices increasing 8.6 per cent.
The bank suggested that house prices would continue to rise, but played down concerns of another property-price bubble.