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House prices grow at slowest rate in six years – CSO

Residential property prices posted their lowest annual growth in over six years in December, increasing by 0.9% after prices in Dublin fell for a fifth month in a row. 

This is according to the latest figures from the Central Statistics Office today. 

House prices have stabilised over the last year having increased sharply for five years after a crash just over a decade ago.  

Prices fell 0.6% month-on-month and are 17.5% below the 2007 peak nationally, the Central Statistics Office said.

Today’s figures show that Dublin residential property prices decreased by 0.9% in the year to December. House prices in the city fell by 0.6% and apartments decreased by 1.8%. 

The highest house price growth in Dublin was seen in Fingal at 2.9%, while Dun Laoghaire-Rathdown saw a fall of 6%.

Meanwhile residential property prices in the rest of the country rose by 2.8% in the year to December, with house prices up by 2.8% and apartments by 2.6%. 

The region outside of Dublin that saw the largest rise in house prices was the Border at 6.7%, while at the other end of the scale the Mid-East saw a 0.6% rise.

The CSO said that households paid a mean price of €295,714 for a home in the 12 months to December.

Unsurprisingly, the mean price of €439,418 in Dublin was the highest in any region or county. 

Dún Laoghaire-Rathdown had the highest mean price in the Dublin region at €602,651, while South Dublin had the lowest at €362,755. 

Outside of Dublin, the CSO said the Mid-East was the most expensive region, with a mean price of €302,816. 

Wicklow was the most expensive county in the Mid-East region, with a mean price of €358,203.

The Border region was the least expensive region in the year to December 2019, with a mean price of €145,377. Leitrim, in the Border region, was the least expensive county, with a mean price of €120,805. 

The CSO said that in the year to December, 45,276 household dwelling purchases were filed with Revenue. 

Of these, 31.9% were purchases by first-time buyer owner-occupiers, while former owner-occupiers bought 52.6% of the homes. The rest (15.5%) were bought by investors. 

Revenue data also showed there were 1,482 first-time buyer purchases in December, an increase of 7.2% on the 1,382 recorded the some month in December 2018. 

These purchases were made up of 522 new dwellings and 960 existing dwellings. 

A lack of affordable housing and sky-high rents were central issues in a national election at the weekend.

All major parties pledged to help increase housing supply in the next government, which may take weeks to form.

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House rebuild costs rise by 6%, SCSI survey shows

House rebuild costs rise by 6%, SCSI survey shows

National average re-build costs have increased by an average of 6% over the past year, the latest Guide to House Rebuilding Costs from the Society of Chartered Surveyors Ireland reveals.

The Guide to House Rebuilding Costs is used by homeowners to calculate the rebuilding costs of their home for insurance purposes.

The SCSI stressed that homeowners should understand the difference between a valuation and rebuilding costs.

A market valuation is the expected amount you could get for your property if it was placed on the open market, but the rebuilding costs are associated with the cost of building or replacing the dwelling.

The SCSI says these figures can be very different.

Today’s guide shows that rebuild costs are up by 8% in Limerick, Cork and Galway over the last 12 months, while the rise in Dublin was a more moderate 5%.

The society said it believes this is linked to increased competition in Dublin, while it also reflects what is happening in the wider property market with prices falling in Dublin and still rising in the regions.

While price increases may have moderated in Dublin, it still has the highest rebuild costs.

The cost of rebuilding a three-bed semi in Dublin, is €208,000, while the cost of rebuilding a similar house in the North West of the country is €130,000.

Micheál Mahon, Vice President of the SCSI, said the cost of rebuilding rose because of the increase in labour rates due to the shortage of construction workers, the impact of new building regulations and the costs associated with disposing of demolition waste.

“The construction sector is experiencing high levels of activity and this increase is having an inflationary effect on construction prices. There are simply not enough construction workers to meet demand and as a result wage costs are rising,” Mr Mahon stated.

“More recently, changes to ventilation requirements for new builds came into effect this year and while they will help reduce heating costs in the long run, this has contributed to the rise in building costs. Thirdly, the costs of disposing of building waste have continued to rise,” he added.

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