DAVY VIEW

Ireland’s residential property prices decelerated on the month in October but remain up strongly by 7.3% in annual terms. While growth in the volume of transactions was relatively muted, we note that October last year was an especially strong month and that the volume of new properties still increased by 10%. Separately, data from Eurostat this morning showed that Ireland’s services prices declined in November. Below, we show that large base effects drove a modest pick-up in the annual increase.