Thursday, July 24, 2014

Dublin Property Prices Up 24% Year-on-year

From True Economics:
Irish Residential Property Price Index for June is out today. Headlines are burning hot with

  • 12.5 hike in prices nationwide (y/y);
  • June m/m rise of 2.9% - faster than 2.3% in May
  • Dublin property prices up 3.3% m/m and 23.9% y/y
  • Dublin House prices up 3.1% m/m and 24.4% y/y
There is no avoiding the talk about a 'new bubble'.
In the past, I clearly said that in my view:
  1. Current levels of prices are not signalling bubble emergence in Dublin
  2. Rates of increases in Dublin prices are concerning, but levels are yet to break away from the national historical averages
  3. Trend-wise, we are way below the levels of Dublin prices consistent with normal long-term behaviour in the series.
Here are updated charts on long-term trends...MORE