House prices in Dublin were down 1.1% in the month but were 3.2% higher in the year in January. The annual rate of increase last month was up from 2.1% in December, which was the lowest rate of increase since May of 2013.
The price of residential properties outside of Dublin was up 0.1% in the month, and 11.4% higher on annual basis, up from 10.2% in December.
“The pick-up in planning permissions should also help to dampen house prices over the next year or two.”
According to Merrion Stockbrokers, “The pick-up in planning permissions, albeit from historically low levels, should also help to dampen house prices over the next year or two. Lower prices will be welcomed by IDA Ireland. The agency has had some difficulty in attracting new foreign direct investment into the country because of soaring commercial and residential property values.
“Still, the generally better economic backdrop, particularly in relation to the labour market, should see house price growth remaining in positive territory on a year-on-year basis for a while yet even with credit restrictions and increased planning permissions. Following an average increase in house prices of 12.9% in 2014 and 10.6% in 2015, we are looking for a more modest increase of 3-4% in 2016, with the biggest gains coming outside Dublin.”
