DAVY VIEW

An encouraging sign in today’s residential property price data was that transactions for new properties grew 19% in May. This augurs well for new housing supply in Q2. Property prices grew 6.2%, matching the April growth rate. With typically strong price growth in the summer months, we see possible upside risk to our full-year forecast of 4.75% growth this year. We also note faster price increases for counties outside Dublin at the same time as strong growth in new business formation.