Irish home values rose at the fastest pace in more than six years in November as the country recovered from Europe’s worst real estate crash.
Residential property prices rose 1.1 percent from the previous month, the most since September 2006, the Central Statistics Office said in a statement today. Values fell 5.7 percent from a year earlier and are 49 percent below their 2007 peak, the statement showed.
“The data strengthens our view that the Irish housing market entered a new phase during 2012, following four consecutive years of double-digit price declines,” Philip O’Sullivan, chief economist at Dublin-based NCB Stockbrokers Ltd., said in a note today.
With the exception of Greece, Irish house prices fell the most among 55 countries in the 12 months ending Sept. 30, data compiled by Knight Frank LLP show. Irish total commercial property returns are the worst in Europe in the five years through 2011, according to Investment Property Databank Ltd.
Dublin residential prices rose 2.4 percent during November, the fastest pace in two months, the Central Statistics Office said. It was the fifth monthly increase this year. Prices in the capital remain 55 percent off their 2007 peak.
“We see divergences across the country, with the prospects for the Dublin market continuing to look brighter than other areas, where oversupply remains a concern,” O’Sullivan said.
Irish home prices may have “over-corrected” by between 12 percent and 26 percent, two central bank economists, Gerard Kennedy and Kieran McQuinn, said in April.
“As always with Irish property data, given the still-low turnover and the fact that cash purchases are excluded from the data, we would be cautious to suggest property prices are rebounding strongly or that a recovery is fully in place,” said Owen Callan, a Dublin-based analyst at Danske Bank A/S.