Dublin property prices show signs of recovery

The latest report from the Central Statistics Office shows that residential property prices across Ireland rose 2.3 per cent in July 2013 compared to July 2012 - higher than the year-on-year rise of 1.2% in June and a significant turnaround from the decrease of 13.6% recorded in July 2012.

Residential property prices grew by 1.2% in the month of July. This was the same as the increase recorded in the previous month and compares with an increase of 0.2% in July of last year.

The figures mark a positive trend for the country - but the recovery is being driven by Dublin. Residential property prices in the city grew by 3.3% in July and were 8.0% higher than a year ago.

Broken down by property types, Dublin house prices grew 3.6% in the month and were 7.5% higher compared to a year earlier. Dublin apartment prices were 11.6% higher when compared with the same month of 2012 - although the CSO notes that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series.

The price of residential properties in the Rest of Ireland (i.e. excluding Dublin) fell by 0.1% in July compared with an increase of 0.3% in July last year. Prices were 1.5% lower than in July 2012.

Even with Dublin showing improvements, though, there is still a long way to go: house prices in Dublin are 52% lower than at their highest level in early 2007. Apartments in Dublin are 59% lower than they were in February 2007. Residential property prices in Dublin are 54% lower than at their highest level in February 2007.

The fall in the price of residential properties in the Rest of Ireland is somewhat lower at 48%. Overall, the national index is 49% lower than its highest level in 2007.