Residential property prices in Ireland fell by 0.1% in June, the first monthly fall since January, but are still 6.6% higher than a year ago, according to the latest official figures to be published.
This compares to a 0.2% rise in May with the data showing that price growth has slowed considerably from the 10.7% annual rise recorded in June 2015.
The figures from the Central Statistics Office (CSO) also show that in Dublin property prices decreased by 0.7% in June and were 4.5% higher than a year ago. House prices decreased by 1% but are still 5% higher compared to a year earlier while apartment prices were 0.5% lower when compared with the same month of 2015.
Ireland’s economy grew by a "very dramatic" 26pc last year, boosted by one-off corporate tax inversions and aircraft purchases, according to official statistics.
Commercial real estate investment remained strong across Europe in the second quarter of 2016 totalling €54.0 billion, up 2.5% on the previous quarter and 30.4% on the 10 year average, new research shows.
However, overall activity fell short compared to the second quarter of 2015 with the office sector having the strongest quarter, seeing an 8.3% increase on the first three months of 2016, driven by a particularly strong performance in the Nordic region.
The research from CBRE also points out that despite uncertainty in the UK caused by the European Union referendum, sentiment remained strong in other European markets and investment levels were stable year on year.
Ireland was left with a surplus of houses after a 2008 property crash that cut values in half but while some out-of-town housing estates lie empty.
A nationwide supply shortage has fuelled a rise of over 2% in the price of the average house in the last three months in Ireland.
The majority of counties in the country recorded price increases in the second quarter of 2016 with a lack of supply exacerbated by would be commuters moving further from Dublin as they look for more affordable homes.
The Real Estate Alliance Average House Price Survey shows that the average three bed semi-detached home nationally now costs €195,361, an increase of over €4,000 or 2.18% since the end of March and up 4.49% compared to the same time last year.
SHOPPING centre giant Hammerson took a £1 billion punt on Ireland today, snapping up the nation’s biggest retail destination as a Brexit vote overshadows prospects at home.
Asking prices for newly listed properties in Ireland increased by 5% nationally and by 3.6% in Dublin in the second quarter of 2016, the latest figures show.
As housing supply continues to decline, average time to sale agreed has fallen to just four months, according to the property report from MyHome in association with Davy.
The report says that Brexit may dampen medium term expectations but the UK’s decision to leave the European Union is not expected to have material impact on the Irish housing market in 2016.
Property prices in the capital Dublin were 4.8% higher year-on-year while property in the rest of the country was 8.5% higher, the central statistics office said.
Total investment volume into European commercial real estate in the first quarter of 2016 reached €36.8 billion, some 30% lower than the same period last year, the latest research shows.
However, several European countries analysed in the report from international real estate firm Savills are seeing increasing investment activity this year. Italy with growth of 54%, Sweden up 33%, Poland up 15%, the Benelux countries up 12% and Finland up 479%, have all performed well. The report says that the data shows that investor appetite is healthy for quality assets in markets with strong fundamentals.
In terms of sectors, industrial has gained ground, increasing by around 19% year on year. This was driven mainly by transactions in the logistics and distribution sector in the UK, Germany, Sweden, Spain and the Netherlands, which accounted for more than 80% of the total activity.
A skills shortage is set to affect Ireland’s ability to address its housing crisis and infrastructure deficit, it is claimed.
In particular there is a shortfall of qualified graduates coming into the profession, according to the newly elected president of the Society of Chartered Surveyors Ireland (SCSI) Claire Solon, a chartered planning and development surveyor.
Research carried out by the Society earlier this year revealed that over 2,000 new job opportunities are expected to be created across the surveying profession in the next four years.
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