Bubble trouble? Property prices surge by 11.6%, CSO reports

IRELAND’S property values have shot up by 11.6% in the year to June, new figures from the Central Statistics Office show.

Dublin values are up by 11.1% over the period, while prices in the rest of Ireland (excluding Dublin) were up by 11.8%.

In Dublin, the sharpest growth was in South Dublin at 11.8%, while the slowest growth was in Fingal, with rises of just 5.4%.

Prices still have a long way to go to match their peak in 2007, just before the crash.

The overall national index is now 29% lower than it was at its 2007 peak.

As the Irish Daily Mail reported in June, property prices look set to carry on rising for years to come.

Such increases, while welcomed by many homeowners, would see more and more people priced out of the market.

Experts also warned that wealthy individuals and corporate investors will increasingly own our town and city centres.

A KBC Bank Ireland spokesman said last night: ‘The upward pressure on property prices continues to reflect the growing imbalance between modestly increasing supply and surging demand.

‘June increase of 11.6% is the fastest in two years and twice the pace of a year ago.’

‘We continue to expect some eventual easing in the pace of property price inflation as affordability constraints restrain demand and higher prices incentivise stronger supply.

‘This process could prove lengthy and uneven. Given increasing lags between mortgage approval and purchase completion, it may take some time for the softer trend in approval size to have an impact on property price inflation.

Economist John McCartney said in June: ‘Prices are just going to keep going up.

‘I don’t think it is particularly good for society, and I don’t think it is particularly good for young people.’