City house prices soar, but homes in short supply
IT will take as many as three years for enough houses to be built to meet demand in Dublin, the Construction Industry Federation (CIF) has warned.
The organisation made the claim as new figures from the Central Statistics Office showed a 15pc increase in residential property prices in the capital last month, compared to the same period last year.
The cost of apartments is 18pc higher, compared to the same month last year.
The significant growth spurt is the biggest of its kind since the property boom.
According to the CIF, property experts attribute the hike in prices to demand outstripping supply in the Dublin region.
But the group added that despite the increased demand for properties, there had been little change in the level of house-building. The Figures provided by the CIF showed that 997 housing units were completed in the capital in the first 10 months of 2013 – just 92 units more than during the same period in 2012.
Group housing director Hubert Fitzpatrick said: "While we have seen a small increase in residential building activity in Dublin in recent months, unfortunately, it is nowhere near a level that would satisfy the market demands."
And he claimed that based on the current level of demand for homes, "we would need to see four times as many houses being built in Dublin on an annual basis".
Mr Fitzpatrick continued: "When you also add in the continuing growth of population in Dublin and the changing demographic needs, then we estimate we are at least two to three years away from producing that level of new housing."
He said that difficulties in securing finance and what he described as "the restrictive nature of the planning regime" had discouraged more widespread building.
Mr Fitzpatrick added that the delay in increasing the number of houses built would "obviously continue to have implications for the housing market, and we would expect to see further price increases in Dublin next year".
The rise in property prices in the capital is more than twice the national level of 6.1pc.
When Dublin is excluded from the figures, the nationwide rise was just 1.5pc between October and September, and still 0.3pc lower than the same time last year.
Overall, national residential property prices are still down 47pc from the height of the Celtic Tiger in 2007.