Property prices see cooling off in growth
New mortgage restrictions are having an impact on the Dublin market with a slight fall in house prices last month.
Figures from the Central Statistics Office (CSO) show that in the month of May, residential property prices fell by 0.1pc in Dublin. However, they were just over 15pc higher than in the same month last year.
Property consultants Savills said the CSO data indicates that the rate of growth is now slowing in Dublin.
John McCartney (pictured), director of research at Savills, said the figures reflect how new mortgage restrictions impinge more heavily on the Dublin market where prices are higher.
The slowdown in growth comes despite a glut of house-hunters seeking to close deals before their old-style mortgage approvals run out.
"We may see a further cooling off in price growth from September when all the house-hunters with legacy loan approvals have done their deals," Mr McCartney said.
"In the longer term, there could be an offsetting pick-up in investor activity as rising rents are making buy-to-let returns look increasingly more attractive than bank deposits," he said.
The CSO figures show that Dublin house prices fell by 0.2pc in May, but apartments in the city rose by 0.4pc.
Meanwhile, outside of Dublin, residential property prices rose by just over 1pc last month. Prices were up nearly 12pc on the same month last year.
At national level, residential property prices were 37pc higher than at their peak level in 2007.
An analysis of trends in the Irish residential sales market for the first quarter of 2015 by Daft.ie showed that: the average asking price for a three-bedroom semi-detached house in Dublin city centre was €360,000; in north Dublin city it was €304,000; in South Dublin city it was €337,000; in north county Dublin, it was €257,000; in south county Dublin it was €459,000; and in west Dublin it was €226,000.