Ireland's home prices in November rise at fastest pace in six years

PUBLISHED : Wednesday, 02 January, 2013, 12:00am
UPDATED : Wednesday, 02 January, 2013, 6:42am

Ireland's home values rose at the fastest pace in more than six years in November as the country recovered from Europe's worst real-estate crash.

Residential property prices rose 1.1 per cent from the previous month, the most since September 2006, the Central Statistics Office said yesterday. Values fell 5.7 per cent from a year earlier and are 49 per cent below their 2007 peak, the statement said.

"The data strengthens our view that the Irish housing market entered a new phase during 2012, following four consecutive years of double-digit price declines," Philip O'Sullivan, chief economist at Dublin-based NCB Stockbrokers, said in a note on December 28.

With the exception of Greece, Irish house prices fell the most among 55 countries in the 12 months to September 30, Knight Frank data show. Irish total commercial property returns were the worst in Europe in the five years to 2011, according to Investment Property Databank.

Dublin prices rose 2.4 per cent in November, the fastest in two months, the statistics office said. Prices in the capital remain 55 per cent off their 2007 peak.

"We see divergences across the country, with the prospects for the Dublin market continuing to look brighter than other areas, where oversupply remains a concern," O'Sullivan said.

Irish home prices may have "overcorrected" by up to 26 per cent, central bank economists Gerard Kennedy and Kieran McQuinn said in April.