DAVY VIEW

The further 0.3% rise in the Residential Property Price Index (RPPI) in December, with annual inflation at 7.8%, shows that house prices continue to be resilient. The lack of housing supply outside the capital, Dublin, seems to be providing more support for prices than we had expected. The 3.5% rise in prices for newly built homes in Q4 2022 also likely reflects cost pressures and government supports for first-time buyers. Meanwhile, residential transactions grew to €24bn in 2022 with little sign of any slowdown in early 2023.