House prices are unlikely to fall in the short term as supply continues to fall short of demand for new homes according to new statistics released today.
Data from the Central Statistics Office reveal that the number of planning permissions granted by local authorities in the first quarter of 2002 fell by 27.7 per cent on the same period last year.
Planning permission was granted for 16,305 dwellings in the three months to March 31st, 2002, compared with 22,558 units for the same period in 2001.
Planning permission was granted for 12,105 new houses compared to 16,492 in 2001, a 26.6 per cent fall. The number of permits for new apartments fell 31 per cent to 4,200.
The average floor area for houses was highest in the west at 157.7 square metres and lowest in the Dublin region at 119 square metres.
Yesterday, a survey carried out on behalf of the Society for Chartered Surveyors warned house prices will continue to be high in the Dublin area in the foreseeable future because of a huge shortfall in the supply of new homes.