ESRI/permanent tsb House Price Index May 2005

• Latest permanent tsb / ESRI House price index shows national house prices rose by 1.8% in the five months to May - less than half the growth seen last year.
• But prices for First Time Buyers rose by 3% since January.
• Figures reveal that average Dublin house prices now 53% higher than average prices outside Dublin .

The value of house prices nationally rose by 0.5% in May, according to the latest edition of the permanent tsb House Price Index. This was up slightly on the 0.3% recorded in April and in line with the growth level of May 2004 (0.5%). The index is compiled by permanent tsb in association with the ESRI.

Measuring price movements over the year to date (January to May inclusive), the index records national price growth of 1.8%; less than half that recorded in the same period last year (3.7%) and the lowest first five month increase in 9 years of recording.

This month's edition of the index also reveals that over the twelve months up to the end of May 2005 the growth in national prices was 6.6%, slightly up on the figure for April 2005 (6.5%) and significantly lower than the equivalent growth rate to May 2004 (11.5%).

The price of a house nationally in May of this year was euro258,898. This is up just under euro16,000 on that recorded in May 2004 (euro242,937)

Commenting on the results, Niall O'Grady, Head of Marketing at permanent tsb bank said: "While the figure for national house price growth continues to be exceptionally low, there are some significant variations with different sectors of the market. In particular its striking that house price growth for First Time Buyers was 3% over the first five months of the year - compared to just 1.5% for second-time buyers. The FTB sector continues to warrant careful attention".

"This month's figures also highlight the growing disparity between the cost of houses in Dublin and outside Dublin with the average price now being 53% higher for homes in Dublin ."

Dublin .V. Rest of Country:
House prices in Dublin and Outside Dublin increased by 0.8% and 0.6% respectively in May 2005. In May 2004 the relative price increases were 1.0% and 0.6% respectively.

House prices growth was 7.5% and 5.3% in the twelve months to May 2005 for houses in Dublin and outside Dublin . The equivalent rates to the end of April 2005 were 7.7% and 5.3% respectively. House price growth in the first five months of 2005 in Dublin and Outside Dublin was 2.6% and 2.0% respectively. The equivalent rates in 2004 were 3.9% and 4.6%.

The price of a house in Dublin and outside Dublin in May 2005 was euro343,562 and euro224,366 respectively. This means that the average price of a house in Dublin is 53% higher than the average price of a house outside Dublin .

The equivalent prices in May 2004 were euro319,365 and euro213,173.

Commuter Counties: - Louth, Meath, Kildare & Wicklow
House prices in the commuter counties of Dublin grew by 0.4% in May 2005, in line with that recorded in May 2004 (0.4%). Growth in the first five months of this year has been relatively strong in the Commuter counties, up 3.1% to May 2005 compared with a May 2005 growth rate of 2.6% in Dublin . The equivalent growth rate to May 2004 was 3.2% for Commuter counties.

House price growth year on year to May 2005 (5.9%), unchanged from that recorded in April 2005 (5.9%). The price of a house in the commuter counties in May 2005 was euro279,513 up from euro263,835 in May 2004.

First time buyers .V. Second time buyers:
House prices for first-time buyers in May 2005 grew by 0.3%, while prices for second-time buyers increased by 0.4%. In May 2004 the respective increases were 0.5% and 0.7%.

House price growth in the first five months of 2005 for first-time and second-time buyers was 3.0% and 1.5% respectively. The equivalent rates in 2004 were 2.6% and 4.5%. House prices grew by 8.3% and 5.9% year on year to May 2005 for first-time and second-time buyers respectively. The equivalent rates to the end of April 2005 were 8.5% and 6.2% respectively.

The price of a house for a first-time buyer and a second-time buyer in May 2005 was euro227,915 and euro291,515 respectively. The equivalent prices in May 2004 were euro210,544 and euro275,438.

3 Bedroom Semi-detached Houses:
3 bed semi-detached house prices grew by 0.7% in May 2005, while in May last year growth of 0.4% was registered.

House prices in this category grew by 5.7% in the twelve months to May 2005, up from 5.4% to April 2005. House price growth in the first five months of 2005 was 2.5% compared with 3.3% in 2004. The price of a 3 bedroom semi in May 2005 was euro255,237, up from euro241,276 recorded in May 2004.

New .V. Existing Houses: