€30,000 wiped off house prices in a year

By Seán McCárthaigh and Conor Keane
HOMEOWNERS across the country have seen an average of almost €30,000 wiped off the value of their properties in the past 12 months.


The latest results from the Permanent TSB/ESRI house price index show that average house prices have fallen by 9.7% in the year to June 2008.

They also reveal that house prices have fallen by 5% since the start of the year, with figures showing prices dropped by 0.6% in the month of June alone.


It is the 16th consecutive month that house prices have fallen, with average sales figures estimated to be 12% off the peak of the market in February 2007.

The average price of a house in the Republic in June stood at €273,392 compared with €302,605 a year before — a loss in value of more than €29,000.

So far in 2008, property values have declined faster outside Dublin (-5.1%) than in the capital (-4.5%).

However, the sharpest drop this year has been recorded in Dublin’s commuter belt, with houses in Kildare, Meath and Wicklow falling by almost 6%.

The price of new houses has also been hit harder in the economic downturn with properties in this category fetching an average of 6.1% less since January compared with a more modest 3.9% reduction in the average price of second-hand homes.

“The soft landing we had anticipated and hoped for has instead been quite rocky,” admitted Permanent TSB’s general business manager Niall O’Grady.

Commenting on the survey’s latest findings, Mr O’Grady said: “Price reductions are continuing nationally and while there have been reductions in all segments, the sharper fall in the price of new houses reflects a more aggressive approach by developers in order to stimulate some market demand.”

On a geographical basis, the biggest downturn in property values occurred in the border region and the south-west of the country, with average prices down 7% and 6% respectively in the first six months of 2008.

Mr O’Grady said the sharp reduction in house prices in northern counties was related to regional unemployment.

Falling prices in Cork and Kerry were believed to be caused by a reduced demand for holiday homes in the area.

In a separate statement, Goodbody stockbrokers predicted that property prices will have fallen by 12% by the end of the year.

Meanwhile, falling prices for oil, metals and cereals could ease inflation pressures in the coming months, enabling the European Central Bank to consider cutting interest rates from the record level of 4.25%.

Goodbody economist Dermot O’Leary said there was a real prospect that inflation rates could decline sharply in the second half of the year as inflationary pressures would ease due to falling prices for commodities.

Mr O’Leary said such cuts should pave the way for reductions in interest rates “sooner rather than later in the euro area”

Iniciado por pluton

si estas en irlanda, como estan los alquileres por ahi?

Iniciado por shalafi

Caros, muy caros, al menos en Dublin. Ya lo habiamos comentado en alguna otra ocasion. Lo normal es que una habitacion en un piso compartido te cueste alrededor de 500 euros.

Un apartamento / piso para dos personas puede ir desde los 700 a los 1200, siendo el de 700 un cuchitril y el de 1200 un piso bastante majo.

De todos modos, si sientes curiosidad date una vuelta por daft.ie y compruebalo por ti mismo.

Hombre, Irlanda esta reconocida como una de las 3 grandes burbujas de Europa, junto a Espania y UK.