DAVY VIEW

The latest MyHome report shows a marginal uptick in asking price inflation to 6% in Q4 2018, despite a 0.9% quarterly decline. Meanwhile, we expect that residential transactions will equal €18bn in 2018, up 20% on the year, with a 15% increase in properties listed for sale indicative of further improvements in housing market liquidity. Looking forward to 2019, we expect house prices to rise by around 5%, driven by the lack of housing supply and fresh allocations of high loan-to-income (LTI) ratios.