Sunday 9th March, 2025
HOUSE PRICES CONTINUING UPWARD TRAJECTORY – IPAV LATEST SURVEY
Prices for homes continued on an upward trajectory throughout 2024, bringing prices actually achieved by agents to 9.58% for the full year, 5.03% for the first six months and an additional 4.55% for the latter, according to the latest Residential Property Price Barometer of IPAV, the Institute of Professional Auctioneers & Valuers.
While the first half was marked by some very high rises for apartments in particular, of the order of 12% to 14% plus, and in more rural settings including Kilkenny, Donegal, Offaly and Westmeath, the latter six months saw more high eight and nine percentage point increases at the top end across all three categories captured in the barometer – three and four-bedroom homes and 2-bedroom apartments.
Pat Davitt, IPAV’s Chief Executive said current indications from members this year suggest property prices are still moving higher and he warned: “If more stock does not come to market soon there is a real possibility that 2025 could repeat 2024’s experience.”
Prices have been on the up since autumn 2023. He said continuing increases of these levels are not sustainable. “They do not augur well for locked-out generations on average, indeed above average, incomes,” he said. “We’re seeing very worrying pressures from a wider societal perspective, such as the difficulties for teachers in affording homes to buy or rent, in the Dublin region in particular.”
CSO data shows new dwelling completions for 2024 at 30,330, a decrease of 6.7% on 2023. CBRE in its recent Ireland Real Estate Market Outlook 2025 report says: “rent regulations currently in place in the Irish market have contributed to a significant slowdown in residential investment over the last two years.”
“The ship that is housing has entered shallow waters and it desperately needs to be taken out of danger,” Mr Davitt said. But, while time is of the essence, given the prolonged nature of the housing crisis, all may not be lost.
He welcomed the promise by the Government of radical change so as to achieve a target of delivering 300,000 new homes by the end of 2030.
“It’s very difficult to see how this can happen unless the Government incentivises small builders back into the market to build homes as they did in the 1990 to 2007 period. While locally numbers were small they were spread nationally satisfying local markets,” he said.
And he said the promised new coordination and implementation group operating from the Taoiseach’s department would be critical. “This would elevate housing policy and take it from the clutches and power accretive nature of a single Government department bringing the white heat of the Taoiseach’s department upon it where it would be far more accountable, with substantially less opportunity for obfuscation,” Mr Davitt said.
And he said comments from the Taoiseach saying he’s “prepared to look fundamentally at everything again”, including abolishing rent pressure zones (RPZs), does present some optimism that we might be entering a more positive period in housing.
“Let us hope the government gets to achieve its ambition before the current vibrant economic climate turns,” he said.