DAVY VIEW

Residential property prices were flat in January following a period of 19 monthly increases stretching back to May 2023. However, we expect this pause will prove temporary. Real wage gains, fiscal supports for households, lower interest rates, significant pent-up demand and continued undersupply are likely to encourage higher property prices this year. Despite a large increase in global economic policy uncertainty, our preferred indicators for activity in 2025 point to continued strong growth in the domestic economy.