Property prices in Dublin are now almost a third higher on average than the rest of the country, according to a new survey.
According to the Property Barometer the weak supply of new houses in the Dublin region will be one of the main challenges facing the property market in 2014
There is now a 28% price differential between prices nationally and in Dublin. This is compared to a 17% difference a year ago.
Caroline Kelleher from DKM Economic Consultants says the Irish property market turned a corner in 2013, with prices stabilising and then rising in Dublin. But she warned that the property market outside of the capital has yet to reach a turning point.
“The market turned in Q2 when the year on year change in mix adjusted asking prices in Dublin entered positive territory for the first time in six years.
While the rate of decline in prices nationally continued to moderate throughout 2013, price increases in the capital, due in large part to a shortage of supply, has meant the divergence between Dublin and the rest of the country is growing and looks set to widen further in 2014.
There is now a 28% price differential between mix adjusted asking prices nationally and in Dublin compared to a 17% difference a year ago” Ms Kelleher said.
The average asking price in Dublin rose by 2.4 percent last year and is now €241,000 ($330,000). The annual increase in 2013 was the largest such rise in seven years.
Outside of Dublin the average asking price is now €189,000 ($258,000), down 5.6 percent on last year according to the survey.
Caroline Kelleher added that the weak supply of new houses in the Dublin region will see a widening in the house price gap between Dublin and elsewhere in the country:
The average time to sale agreed is 3 months in Dublin, 5 months in Galway, 6 months in Cork, 7 months in Waterford and 10 months in Limerick.
The survey also provides some details of sales in other Irish cities. Cork continues to show strong signs of stabilisation with the median asking price of properties in Cork City now unchanged for an entire year.