Survey shows house prices rising by 9%

Strong demand for new houses by first-time buyers is continuing to support the pick-up in Irish property prices, according to…

Strong demand for new houses by first-time buyers is continuing to support the pick-up in Irish property prices, according to the latest edition of the permanent tsb House Price Index.

The survey reveals house prices nationally grew by 1.5 per cent during September, giving a growth rate of 9 per cent for the year to September 2002. This compares to an increase of 6.6 per cent in the same period last year.

The average price paid for a house nationally in September was €197,960; the equivalent price in September 2001 was €185,562.

The average price paid for a house in Dublin in September was €255,510; the equivalent price for a house outside Dublin was €174,713.

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The average price paid by a first-time buyer and a second-time buyer in September was €174,480 and €222,970, respectively.

The average price paid for a new house in September 2002 was €197,142, while that paid for a second-hand house was €202,125.

Mr Niall O'Grady, of permanent tsb said the strong growth figures in both August and September confirms recent evidence of very strong demand in the market, particularly from investors and first-time buyers.

The idex is compiled with the Economic & Social Research Institute. It is widely regarded as the most credible measure of house price movements in the country.