DAVY VIEW

As we expected, residential property prices in August returned to double-digit growth. Strong increases in employment and hourly wages have likely exerted upward pressure on prices. Lower interest rates will also boost demand, although lending growth remains muted. However, supply remains lower than annual need and far below the level required to address pent-up demand. The Q3 release for new dwelling completions is scheduled for next week, and this will be of significant interest with housing still a major issue for voters ahead of Ireland’s general election.