Property consultants Savills say house price growth in Dublin is likely to slow sharply when the October index is published on Wednesday.

However according to John McCartney, Director of Research at Savills, this is more due to a technical base effect than to any material slowdown in recent months.

“In the month of October last year, Dublin prices rose by a staggering 3%. This feat would have to be repeated in October 2015 for the annual rate of price growth to hold at its current 6.5%. This is highly unlikely, and as a result, the annual growth rate will be dragged lower.”

McCartney warns against reading too much into this figure;

“A further sharp slowdown will undoubtedly attract headlines. But it will really say more about what was happening in the market last year than what is going on today. The frenzied activity we saw 12 months ago as buyers rushed to avail of tax breaks and more lenient lending practices has gone. But agents are reporting steady transactions and robust prices, particularly in the €400,000-€650,000 price range where competition is hottest.”

Savills expects annual price growth by year-end in Dublin to be around 5%.