House prices rise over 10% in first six months of 2000

House prices, Rising at a faster rate than last year

A new survey reveals that house prices are rising at a faster rate this year than they were in 1999. There was a 10.4% rise in prices in the first six months of this year, compared to 7.3% over the same period last year. The survey was carried out by the Irish Permanent Building Society in conjunction with the ESRI.

On a related issue, RTÉ has learned that almost half the planning positions in Dublin Corporation are vacant. The situation is mirrored in local authorities across the country as town planners leave to join a growing number of private consultancies. In our second report, on the drift from the public to the private sector, we explore how the chronic shortage in planners is holding up the provision of new homes.

The average house these days costs just under £125,000 pounds. In Dublin the average price is £165,000 and the figures are still going up. According to the latest Irish Permanent/ESRI survey, the prices are rising faster this year than they were last, contradicting any earlier reports that house prices were beginning to level off or even drop in certain areas. The survey claims that, for the first six months of this year, house prices in Ireland rose by 10.4%. This compares to 7.3% over the same period in 1999.

Existing homes are rising at a faster rate than new houses. Second hand houses rose by 10.6%, while new houses rose by 8.5%. This also means that lending institutions are giving out more money to home buyers, but they are not concerned that they are lending too much. Regionally, Dublin is rising faster than the rest of the country, up by 13.2%. Cork has also picked up at 10.8% The rest of Ireland is 10%. Economists attribute this strong growth to the strength on the demand side. With strong employment growth and incomes rising, prices will continue their upward trend until the supply of houses accelerates.