House pricesup slightly by 0.29% y-o-y in Q1 2020
Nationwide residential property prices rose by a miniscule 0.29% during the year to Q1 2020, following a y-o-y decline of 0.97% in Q4 2019 and annual rises of 0.23% in Q3, 0.88% in Q2, and 2.63% in Q1. During the latest quarter, Irish house prices dropped 0.22%.
Demand is falling but supply is surging
In the first quarter of 2020, the total number of market-based household purchases of residential dwelling fell by 11% to 8,052 units from a year earlier, following a 1.8% growth in 2019, according to Ireland’s Central Statistics Office. Similarly, sales value dropped 9.7% y-o-y to €2.36 billion in Q1 2020.In Dublin, the number of sales dropped 14.1% while sales value fell by 11.7% over the same period.
New dwelling completions surged by 17.2% to 4,986 units in Q1 2020 from a year earlier, following a 17.8% growth in 2019, based on figures from the CSO.
Rents, rental yields: excellent yields at 7.18%
Dublin apartment costs are around €2,354 per sq. m.
|Ireland: typical city centre apartment buying price, monthly rent (120 sq. m)|
|Buying price||Rate per month||Yield|
|Dublin||€ 282,451||€ 1,690||7.18%|
Recent news: The Irish economy grew by about 6.1% in 2019, after GDP growth of 8.2% in 2018, 8.1% in 2017, 3.7% in 2016, 25.1% in 2014 (obviously a statistical artefact), 8.5% in 2014, and 1.4% in 2013, according to the Central Bank of Ireland. The strong growth, despite uncertain economic outlook, was mainly driven by companies nominally relocating in the country, such as Perrigo Co. and Jazz Pharmaceuticals Plc, who are attracted by the country’s very open economy and by its relatively low tax inversion rate of 12.5%.
Yet the Irish economy is now projected to contract by as much as 7.9% this year, according to the European Commission, after the coronavirus outbreak and related lockdown measures severely hit investment, private consumption and external trade.