House prices in Dublin have risen for the ninth consecutive quarter, with homes in some parts of the city now costing almost 33pc more than they did a year ago.
And the housing crisis is continuing to push up property prices around the country, with a 14pc increase recorded nationally, according to the latest survey by Daft.ie.
Cork city prices have risen by 10.7pc while there has been a 13pc increase in Galway city. Waterford city has posted its first year-on-year increase, with house prices up by 2.5pc.
But it is Dublin where the largest increases are still being registered. Economist Ronan Lyons said there had been an increase of more than 40pc in prices for Dublin city and south county Dublin, compared to their lowest ebb in 2012.
Prices are up by between 17pc and 29pc in Dublin city, and 25pc on average, while neighbouring counties Louth, Meath, Kildare and Wicklow have all jumped by between 14pc and 20pc. Mr Lyons said the rocketing prices were a result of the continuing under-supply of houses across the country and said a sentiment survey showed people in Dublin expected prices to rise by 12pc in the next year. “Such sentiment can result in increased activity, which further pushes up prices,” he warned. Ireland’s ability to attract foreign direct investment (FDI) could also be under threat if the housing crisis continues.
“If you talk to companies like Intel or Google, who employ thousands of people each, they are noticing their staff are finding it increasingly difficult to get somewhere to live,” he said. “If we price ourselves out by having high rents, there is a worry about FDI coming to Dublin.”
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