Irish house prices rose 8.6% during 2004 according to PermanentTSB and the ESRI.

Whilst it is an impressive growth rate, it is down on 2003’s growth of 13.8%.

The average national house price in December was EUR 254,215.

The report shows wide variations of prices across the country. During 2004, Counties Cork and Donegal saw growth of 16%, whilst only 5% growth was recorded in Longford.

For the capital, prices in Dublin rose by 8.9% in 2004. The figure for Dublin for 2003 were 12.7%.

House prices for first-time buyers and second-time buyers increased by 7.9% and 9% respectively in 2004. New house prices were up 12.4%, rising at a faster pace than 2003’s 10.8%, while second-hand prices were 8.7% higher.

Commenting on the results, Niall O’Grady, Head of Marketing at permanent tsb bank said; “house price growth moderated to more sustainable levels last year. He predicted growth of 5-7% for 2005.”

2005 Outlook

In other developments, the Irish Central Bank governor John Hurley predicted a soft landing for Irish house prices for 2005.

Speaking at a meeting of Cork Chamber of Commerce, he said ?On the domestic front, developments in house prices and the rapid increase in mortgage credit pose some concerns. I continue to believe, however, that a soft landing in this market is the most likely scenario.?

Links:

Permanent TSB Bank