Dublin house prices have recorded their first reduction this quarter following 11 consecutive quarterly increases in residential property prices in the capital since price recovery commenced in Q3, 2012. This price repositioning was largely inevitable given last year’s very strong price growth, where house prices rose by 23.5% in the capital as a result of pent-up demand and limited stock availability. This price inflation was partially driven by a high level of demand created by investors who competed strongly to purchase good-quality properties in the city. These properties had to be purchased by the end of 2014 in order to qualify for an exemption from Capital Gains Tax if buyers held on to the property for 7 years. This rush led to significant prices inflation for some property types in a number of city areas.