Second-hand residential property in Dublin increased, according to the latest results of the quarterly House Price Gauge by Douglas Newman Good.
According to the report, the average price paid for a second-hand house rose to €306,207, up from €292,147, during the third quarter of the year, continuing the increase in residential property prices that began back in January of this year.
The latest increase indicates a gradual slowdown in property price inflation following price rises of 6.5 per cent in the first quarter and 7.1 per cent in the second quarter. In the first quarter of last year house prices fell by 2.8 per cent, the report says.
Overall, in the 12 months to the end of September 2002, prices have risen by 17 per cent compared to an increase of 8.6 per cent in the 12 months to June 2002.
budget which have This annual percentage increase reflects a strong rebound in the Dublin residential property market following a turbulent period during 2001 and has been created by measures introduced in last year's underpinned strong demand so far this year.
"The third quarter results show a more moderate increase in prices than earlier in the year primarily because the temporary boost to demand from the Budget last December is gradually tapering off," Mr Paul Murgatroyd, economist with Douglas Newman Good (DNG) said.
"Demand reached a peak in the second quarter when levels of supply were very low and this lead to the peak in the rate of increase in that quarter".
DNG also anticipates an increase in the number of second-hand house on the market during the final quarter, resulting in a more modest growth in prices.
"Since January prices have increased by more than 18 per cent showing the strength of the demand that still remains for residential property following a subdued market situation in last year," Mr Keith Lowe, senior partner with Douglas Newman Good said.
"Supply in the second-hand market for the majority of this year has been approximately 30 per cent lower than last year and undoubtedly this has contributed to the strong recovery of residential prices this year.
He said: "We feel that this is because people have decided to either improve their existing properties, or to have a period of consolidation by taking stock of their individual financial circumstances against a backdrop of relatively uncertain economic circumstances".