A member survey by the Irish Auctioneers & Valuers Institute (IAVI) has confirmed that value of houses has dropped by an average of 9.2% nationwide in the second quarter of the year. Prices have fallen 16.9% in the first half of 2009. Second-hand apartments plunged 12.2% in second quarter and 19.7% in the half year.
During the boom, it was clear to the clued-in that in a downturn, poor-quality apartments with limited storage space, poor structure quality compared with the pre-Celtic Tiger period and less parking spaces than units, would be exposed.
Last March, the European Housing Review 2009, a report of the Royal Institution of Chartered Surveyors (RICS), said despite the Irish housing boom, Ireland still has worse housing conditions than other countries with similar living standards, with floor areas per person of around a fifth less than the western European average, even though a large number of dwellings (45%) are detached houses.
Land is scarce in a country that is 4% urbanised!
In a similar vein, it's claimed today that most households in Ireland have been supplied with contaminated drinking water that violates EU standards, according to a paper in the ESRI’s latest quarterly review.
Conducted amongst members nationwide, the IAVI survey shows that the values of houses in Dublin declined by an average of 7.7%. In Munster, values dropped sharply by an average of 10.7%. Meanwhile, in Leinster and Connaught/Donegal, values decreased on average 9.6% and 7.4% respectively.
Second hand apartment prices fared somewhat worse than houses in urban areas during Q2 2009, with average decreases in value of 11.7% (one bed) and 12.5% (two bed) in Dublin and 12.2% nationally for both one and two bedroom apartments.
Since the start of 2009, the survey has shown that, nationally, house prices dropped by 16.9% in the first six months of the year, with the following regional results: Dublin houses are down by an average of 12.2%. In Munster, values are down 22.3% on average. In Leinster and Connaught/Donegal, values decreased on average 19.9% and 14.9% respectively.
According to Simon Ensor from the Residential Panel of the IAVI National Council, “These results are based on the experience of professional practitioners conducting property transactions, they are more reliable than advertising-based statistics or other surveys that are based on data from some months ago. In effect, the IAVI survey represents the view from the coalface of those engaged in selling property in the current market.
“Depreciation has continued apace for the second quarter of the year. For the first half of 2009, new urban house prices are down by an average rate of 17.14%, second hand urban homes are down 18.4%, new rural homes are down 22% and second hand rural homes are down 20%.
“While these figures are very disappointing there is a view amongst IAVI member firms that, although prices have not hit the bottom yet, they are extremely close to doing so.
“IAVI members, particularly those in urban areas, believe that activity levels have increased with competitive bidding on well-priced houses occurring once more. However, it’s fair to say most activity is at the more affordable end of the market. The lack of liquidity in the banking world appears to be restricting activity in the middle to upper end of the market. To breathe life back in to this sector, it is crucial that banks increase their lending levels, whether this is enabled by the introduction of NAMA or other means,”he said