Irish house prices: Average cost of a resale home outside Dublin up 6.8% in 12 months

The average price of a resale home outside Dublin increased by 6.8 per cent in the twelve months to June, according to property company DNG.

That represented an increase on the 4.3 per cent rate of price inflation seen during the full year 2023 and double the rate of 3.4 per cent recorded by DNG in the year to June 2023.

A similar trend was also evident in the Dublin market where there was an increase in the average price of a resale property of 6.4 per cent in the year to June compared to a rate of 3.3 per cent for the year to December 2023.

In addition, there was growth in the average value of an apartment in the capital of 4.2 per cent in the 12 months ended June.

According to DNG, strong price growth has been recorded in the first half of 2024, with the average price of a resale property nationally, excluding Dublin, increasing by 4.7 per cent in the first six months of this year.

That brought the average value of a resale property outside the capital to €289,045, up from €276,149 at the end of December.

Nationally, and including Dublin, the average price of a resale home now stands at €360,094. In Dublin the average price of a resale home has risen to €556,346.

On a regional basis, the annual rate of price growth in the year to June was strongest in the mid-west region at 8.5 per cent, followed by the mid-east (7.5 per cent) and Border region (7.3 per cent).

In the first six months of 2024 the mid-west and south east regions saw the strongest price performance with increases of 4.9 per cent recorded in both regions, followed by the south west (4.8 per cent).

Outside Dublin, the region with the lowest average price remains the Border at €228,425 followed by the midlands at €237,408. The mid-east region (Kildare, Wicklow, Meath and Louth) has the highest average price outside the capital at €411,627.

First time buyers continue to be the majority purchasers of second hand properties in the capital, buying 53 per cent of sales agreed in the period.

The research shows an additional 19 per cent of purchases were made be owners trading up in the market whilst only 7 per cent were buying in order to trade down.

With regard to financing their purchase, 64 per cent of buyers relied on mortgage finance to complete their purchase, a further 24 per cent used cash or non-mortgage finance, whilst 8 per cent of buyers were selling an existing property in order to move home.

DNG director of research Paul Murgatroyd said the first six months of this year saw “relatively strong growth” in residential property prices across the country, continuing a trend that began in the second half of last year.

“Indeed, the second quarter of this year alone saw the largest quarterly increase in values in three years in the Dublin market, with prices increasing by 2.5 per cent in the three months to June,” he said.

“Prices are underpinned by the continued lack of supply available to purchasers at the present time, combined with strong demand, particularly from first time buyers.”

DNG chief executive Keith Lowe added: “The residential sales market proved very resilient in the first half of the year as potential buyers were very active in their search for a new home, which resulted in competitive bidding situations on the vast majority of stock offered for sale.

“The exodus of investors appears relentless with 25 per cent of all house sales so far this year emanating from investors leaving the market.

DNG will again be calling for the inclusion of new tax incentives in Budget 2025 to make it more attractive for landlords to stay in the market.”