House prices in Cork city have increased by 9.2% in the past year, with the average asking price now at €256,201
The latest figures come amid warnings that major house building must start immediately to avoid prices reaching
The latest Daft.ie reported showed the average asking price in the city was now 56% above its lowest point, with house prices rising by €2,000 a month on average.
In Cork county, prices in the second quarter of 2017 were 11% higher than a year previously, compared to a rise of 12% seen a year ago. The average house price is now €207,000, 44% above its lowest point.
Economist Ronan Lyons said the figures showed the need to increase house building as a matter of urgency.
“With each passing quarter, the imperative becomes even greater to address the high construction costs that are limiting the ability of supply to meet strong demand,” he said.
“The country still needs at least 40,000 and probably closer to 50,000 homes of all types every year. And still it gets just a small fraction of that – with perhaps just 3,000 new homes added by the professional construction sector in 2016.”
Nationally, house prices have risen by more than €2,000 a month over the last year, according to the report. The 4.3% increase in the second quarter of 2017 matched the increase seen in the first quarter.
Mr Lyons said supply has not been meeting demand since 2011 and suggested new Housing Minister Eoghan Murphy should focus on tackling the high costs of construction.
“This will have beneficial effects for both market and social housing. Combined with a strategy for using vacant homes, using land better and reform of housing subsidies, it is entirely possible for this country to have a healthy housing system.”