House prices in the Republic grew at an annualised rate of 8.1 per cent in January as supply pressures continued to underpin demand. This was down from a rate of 8.8 per cent in December and a rate of over 10 per cent last August.
The latest official figures indicate prices in Dublin rose at a yearly rate of 7.5 per cent while values outside the capital increased at a rate of 8.6 per cent. On a monthly basis, prices were flat in January.
The Central Statistics Office’s (CSO) latest property price register showed the median or middle price paid for a home in the 12 months to January was €359,999.
The highest median price was €662,349 in Dún Laoghaire-Rathdown while the lowest median price was €180,000 in Leitrim.
The CSO’s national index indicates prices nationally are now 16.9 per cent above their highest level at the peak of the property boom in April 2007. Dublin residential property prices are 4.3 per cent higher than their February 2007 peak.
The latest snapshot of the market comes amid a slowdown in new home completions and as the Central Bank warns that overall investment in the sector remains below the required levels “based on population growth and household formation”.
Home completions dropped to just over 30,000 units last year, well below the 40,000 level targeted by Government.
The CSO figures show that in the year to January, there were 48,955 dwelling purchases made by households at market prices. Of these, 17,814 (36.4 per cent) were purchased by first-time buyer owner-occupiers, while former owner-occupiers purchased 25,770 (52.6 per cent).
To gauge market momentum, Goodbody economist Dermot O’Leary said it was preferable to look at the annualised rate of growth over the past three months.
“This shows growth of 6.1 per cent nationally in the three months to January 2025, with house prices growing by 6.7 per cent and apartments by just 2.4 per cent,” he said, noting the greatest price momentum was in the south-east (12.9 per cent).
Trevor Grant, chairperson of Irish Mortgage Advisors, said: “While the rate of national house price growth has eased, house prices are still rising steeply and continue to be a huge source of frustration and despair for many house hunters.”
“While many are qualifying for mortgage and buying homes, for too many of this country’s young people, buying a house has simply become unachievable,” he said.
“If house prices are ever to be kept in check, the perennial problem at the heart of the Irish housing crisis – that is, the huge shortage of, and high demand for, housing – needs to be tackled,” he said.
Pat Davitt, chief executive of the Institute of Professional Auctioneers and Valuers (Ipav), said the level of increases that have been happening over the last year and more are not sustainable.
“We now need to see the fundamental change in housing policy promised by the Taoiseach,” he said.
“Housing policy for too long has been debated from the standpoint of different ideologies rather than acknowledging the realities and practicalities of the marketplace,” Mr Davitt said.
