I am aware of the forecast referred to by the Deputy and, while my Department does not publish projections of future house price levels, there is strong evidence that the range of measures being taken by the Government to remove over-heating in the housing market and accelerate housing supply is working.
I expect that the forecast referred to may have been prepared before the very large increase in housing output in the first quarter of 1999 was known. New house completions for the first three months of 1999 were 24 per cent higher than in the same period last year. Most significantly, there was a 28 per cent increase in output in Dublin where housing output had been relatively sluggish in recent years.
House price statistics for the March quarter 1999 are currently being finalised and will be published shortly. Provisional data indicates that the average price in Dublin for the March 1999 quarter is in the region of £142,000 for new houses and £150,000 for second-hand houses. These figures are derived from all loan approvals which will include some very expensive houses in premium locations. The average price paid by first time purchasers is significantly lower.
The provisional figures for the March quarter reveal some encouraging trends. In particular, Dublin secondhand house prices, which have been the leading indicator of price trends for a number of years, suggest an increase of 1 per cent and a total increase of only 2 per cent over the last six months.
I am confident that the trend of house price moderation will be further reinforced as the effects of measures taken to increase the supply of housing and the availability of affordable housing, including the serviced land initiative, promotion of increased densities, the new local authority affordable housing scheme and use of temporary treatment facilities to bring forward housing development, become increasingly evident.
