The residential property price in Ireland has increased by almost 7% within a year, the new figures by Central Statistics Office (CSO) revealed. The average price of properties from June 2020 to June 2021 across the country went up despite the pandemic impact.
As per CSO, there is a 6.9% house price increase during the last 12 months all over the country. Even though the prices are lower compared to 2007 recession peak, current rate is almost 95.4% more than that of in 2013, means almost double. While Dublin showed an increase of 6.4%, the rest of the country recorded an increase of 7.4%.
The constrain in supply of residential units are the main cause of price surge, the exerts say. They also warn the rise will continue until supply is balanced. Former reports also have indicated that, people have good savings due to less spending during lock down, but enough homes are not available to purchase. With the impact of Covid, one of the hard-hit areas was construction. The rise in construction material prices also make the issue worse.
The construction people hope a boom in business towards the end of the year as restrictions eased, which may help to reduce demand issues.