Dáil Éireann Debate, Thursday - 29 September 2016
96. Deputy Bernard J. Durkan asked the Minister for Finance the degree to which he monitors house property prices, with particular reference to the need to ensure that such prices do not become a major governing economic influence as in the past; and if he will make a statement on the matter. [28007/16]
View answerAccording to the Central Statistics Office's Residential Property Price Index, national property prices increased by 2.5 per cent between June and July and by 6.7 per cent on an annual basis. This overall trend has been driven by price developments outside of Dublin, where residential property prices have increased by 3.5 per cent over the month and by 11.3 per cent on an annual basis. In Dublin, residential property price inflation has been more subdued, increasing by 1.6 in July and by 3.8 per cent on an annual basis. The growth in residential property prices in July follows several months of moderation in residential property price inflation, with house price inflation of just 0.7 per cent between January and June 2016, a pattern which is likely to have been influenced by the Central Bank's macro-prudential measures. The Deputy may wish to be aware that the IMF's latest Financial Sector Assessment Programme report published in July indicated that Irish property prices were around equilibrium levels.
I wish to assure the Deputy that my Department continues to monitor developments in the property market including house prices. The recently announced Rebuilding Ireland - Action Plan for Housing and Homelessness outlines the Government's commitment to restore the housing market to a sustainable equilibrium. The measures set out in the Action Plan should help to stimulate supply by streamlining the planning system, removing infrastructure blockages and supporting the delivery of affordable housing. These measures should help make new developments economically viable in areas where supply constraints (and price pressures) are particularly acute.
