Vol. 508 No. 1
562 Mr. Hayes asked the Minister for the Environment and Local Government his views on whether house price inflation will exceed 20 per cent in Dublin for the third consecutive year during 1999; and if he will make a statement on the matter. [17351/99]
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 overheating in the housing market and accelerate housing supply are bringing about significant moderation in house price increases.
House price statistics for the June quarter, 1999 contained in the housing statistics bulletin published by my Department show that new house prices increased by only 1 per cent nationally and 2.6 per cent in Dublin in the June quarter. The annual rates of increase – June quarter 1999 compared with June quarter 1998 – were 16.7 per cent nationally and 15.3 per cent in Dublin. The annual rate of increase in new house prices in Dublin was lower than at any period since the last quarter of 1996 and contrasts with a peak rate just prior to the publication of the first Bacon report and the Government's Action on House Prices, of more than 37 per cent in the first quarter of 1998 compared with the first quarter of 1997. The annual rates of increase in second-hand house prices – 18.9 per cent in Dublin and 22.3 per cent nationally – are also moderating and are well below the peak annual rates of 42 per cent in Dublin and 37 per cent nationally in 1998.
