Irish property prices see first year-on-year increase since 2008

Residential property values jumped 1.2 per cent across the country in June from May 2013, building upon a 0.3 per cent monthly increase in May. On an annual scale, prices also rose 1.2 per cent - a positive rebound following an annual drop of 1.1 per cent in May and a complete turnaround from June 2012, when prices plummeted 14.4 per cent over the previous 12 months

In Dublin residential property prices grew by 1.7per cent in June and were 4.2per cent higher than a year ago. Dublin house prices grew 1.4per cent in the month and were 3.6per cent higher compared to a year earlier. Dublin apartment prices were 9.7per cent higher when compared with the same month of 2012. The CSO notes, though, that the sub-indices for apartments are based on low volumes of observed transactions and consequently suffer from greater volatility than other series.

Dublin remains the biggest influence on the market, with house prices in the city 54per cent lower than at their highest level in early 2007. Apartments in Dublin are 58per cent lower than they were in March 2007. Residential property prices overall in Dublin are 55per cent lower than at their highest level in March 2007 - higher than the drop recorded by the rest of the country, which is somewhat lower at 48per cent.

Indeed, the price of residential properties in the Rest of Ireland (i.e. excluding Dublin) grew by 0.7per cent in June compared with a decrease of 1.0per cent in June last year. Prices were 1.0per cent lower than in June 2012.

Overall, the national index is 50per cent lower than its highest level in 2007.