June 22 (Bloomberg) -- Dublin residential property prices rose 0.4 percent in May from April, the first time values have gained in more than three years as Ireland endured the worst housing slump in its history.
Prices of houses and apartments in the Irish capital fell 11.5 percent in May from a year earlier, the Central Statistics Office in Cork said.
“Care should be taken when interpreting individual monthly figures,” the CSO said on its website today. The numbers may “indicate short-term volatility rather than underlying change in longer-term price trends.”
Nationwide, house prices fell 1.2 percent in May from April as Ireland’s economy grapples with the fallout from the bursting of a decade-long real-estate bubble. The economy has shrunk about 15 percent since 2007 and the government has pledged 46 billion euros ($66 billion) to rescue the debt-laden financial system amid property loan losses.
“We still expect the national property index to contract on the back of tight credit conditions, slack employment, increasing interest rates and lack of mobility,” said Brian Devine, an economist at NCB Stockbrokers in Dublin. “We would still expect that house prices will continue downward in Dublin, albeit for a shorter period than for apartments.”
--Editors: Jennifer M. Freedman, Jones Hayden
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