Irish house prices up by lowest rate in 9 years

House prices rose by just 1 per cent in first three months of 2005 in what was the lowest rise in nine years, according to the latest Permanent tsb/ESRI House price index.

The index showed the value of house prices nationally rose by 0.4 per cent in March compared with 0.8 per cent recorded in March 2004 but ahead of the 0.3 per cent recorded in February.

The index also reveals that over the 12 months up to the end of March 2005 the growth in national prices was 7.5 per cent.

This continues the downward trend in annual growth rates - falling from 9.8 per cent in November to 8.5 per cent in January and to 7.9 per cent in February.

The price of a house in the Republic in March of this year was on average €256,690 up just under €18,000 on €238,813 for March 2004.

House prices in Dublin increased by 0.7 per cent in March and cost on average €339,946 compared €314,138 in March 2004.

House prices outside Dublin rose by 0.4 in March and cost on average €222,077 compared to €208,575

House prices for first-time buyers grew by 0.3 per cent; prices for second-time buyers rose by 0.5 per cent in March 2005. In March 2004 the respective increases were 0.0 per cent and 1.0 per cent.

Permanent tsb bank's Niall O'Grady said: "While there are some significant variations within the different sectors of the housing market, the overall picture this year is one of consistently modest price rises resulting in the lowest level of national price growth in a quarter in nine years of researching these figures."

Mr O'Grady said: "Looking forward these figures suggest that a national house price growth rate of 5 per cent remains a very achievable outcome for the year as a whole."