DNG report shows residential property prices still rising, but at a slower pace

Annual rate of house price inflation moderates further in year to June 2023 as first time buyers dominate the market.

According to the latest residential market review from leading property advisors DNG, the annual rate of house price inflation continued to ease during the first half of the year. At a national level (excluding Dublin) the annual rate of growth in prices eased back to 3.4% for the year to June 2023, falling back from a rate of 7.6% recorded on the DNG National Price Gauge (NPG) in the year to December 2022. The annual rate for year ending June 2023 is in sharp contrast to the same period in the previous year when prices nationally (excluding Dublin) rose by 12%.

According to the DNG NPG, the average price of a resale property nationally (excluding Dublin) rose by 2.3% in the first six months of this year, bringing the average value of a property to €270,744 up from €264,775 at the end of December 2022.

On a regional basis, the NPG results show that the annual rate of price growth in the year to June was strongest in the West region (+5.0%) and Midlands (+4.2%) but below average in the South East region (+1.7%) however, all regions saw price positive house price inflation in the year to June 2023. However, the pace of price inflation moderated significantly in all re- gions of the country in the year to June when compared to the year to December 2022.

An analysis by DNG of the buyers of resale properties in the first 6 months of the year confirms that first time buyers remain the most active players in the market, accounting for one in every two purchases of second hand properties, highlighting both the strength of underlying demand from first time buyers keen to own their own home and their willingness to purchase in the resale market despite the plethora of supports targeted at first time buyers of newly constructed homes. The continued lack of affordable property options in the new homes sector for buyers remains part of the issue , meaning first time buyers are seeking out homes in the resale market at the price point and in localities where they wish to reside.

Commenting on the results, DNG Director of Research Paul Murgatroyd said, “The latest results of the DNG price gauges confirm that residential property prices across the country are still rising however, the pace at which they are doing so has moderated again, suggesting we may well be closer to another peak in the market. Affordability continues to be an issue impacting buyers, particularly in Dublin and the Mid-East Regions due to strong price growth in the last two to three years”.

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