Quick Recap - What happened in Dublin?
House and unit purchase and rent prices had a steep decline between 2007 and 2013. The prices then began to recover.
The rental yields were far more attractive during recovery than before the decline.
The timeline of prices
Note that none of these prices have been adjusted for inflation.
|($ or euro)/mo||($ or euro) '000s|
What is the story today?
House prices have continued to recover, and rents too though to a lesser extent. Largely they have not yet recovered to their 2006 values.
If you had purchased a 5 bedroom house in 2006 for €1.743M, today with inflation that should be €2.255M. Instead the price is €1.01M, 55% lower.
In Australia it seems home prices have increased, though not much more than inflation (%5 growth after inflation), while unit prices have declined. This could be a function of the area, an exceedingly large supply of units has been built in the South Yarra area. Rent prices have declined, both in dollars and when adjusted for inflation.
Perhaps this is a reflection of the very low wage growth enjoyed by Melbourne professionals over the same period, or again is a function of the increased housing supply in South Yarra and competing suburbs.