| Click for the Finfacts Ireland Portal Homepage |

Finfacts Business News Centre

Home 
 
 News
 Irish
 Irish Economy
 EU Economy
 US Economy
 UK Economy
 Global Economy
 International
 Property
 Innovation
 
 Analysis/Comment
 
 Asia Economy

RSS FEED


How to use our RSS feed

Follow Finfacts on Twitter

 
Web Finfacts

See Search Box lower down this column for searches of Finfacts news pages. Where there may be the odd special character missing from an older page, it's a problem that developed when Interactive Tools upgraded to a new content management system.

Welcome

Finfacts is Ireland's leading business information site and you are in its business news section.

Links

Finfacts Homepage

Irish Share Prices

Euribor Daily Rates

Irish Economy

Global Income Per Capita

Global Cost of Living

Irish Tax - Income/Corporate

Global News

Bloomberg News

CNN Money

Cnet Tech News

Newspapers

Irish Independent

Irish Times

Irish Examiner

New York Times

Financial Times

Technology News

 

Feedback

 

Content Management by interactivetools.com.

News : Property Last Updated: Jul 1, 2014 - 9:12 AM


Irish houses for sale rise in response to increasing prices
By Finfacts Team
Jul 1, 2014 - 7:54 AM

Email this article
 Printer friendly page

More houses have come on the Irish market for sale in the past three months than in any previous quarter since 2008, according to the House Price Report released today by Ireland's biggest property website Daft.ie. Almost 15,000 properties came to market between April and June as the national average asking price rose 9% from the same period last year. The average asking price nationwide is now €187,000, compared to €171,000 a year ago and €380,000 at the peak.

House prices in Dublin have risen 21% in the past year, with the surrounding counties of Meath, Kildare, Wicklow and Louth also experiencing annual price increases of between 6% and 13%. In the other major cities, increases occurred in Galway and Cork of 5% and 2% respectively. In Limerick city, prices were down by 9%, whilst Waterford city experienced a decrease of 4%.

The Daft House Price Report, which also analyses the Property Price Register, highlights that there were 28% more transactions at the start of 2014 than a year previously. This also represents the 10th consecutive quarter of growth in the number of property sales.

Commenting on the report, economist with Daft.ie, Ronan Lyons said: "There has been much talk of the housing market being illiquid, with a lack of homes available to buy. The evidence from the period between April and June is that the tide may be turning. More than 6,000 Dublin homes were listed during the second quarter, the largest number since early 2008. As a result, the total stock sitting on the market rose in Dublin from less than 2,300 in March to more than 2,800 in June. Further increases in supply will be needed, though, to work through the backlog in pent-up demand from the years of the crash.

Report [pdf]

Ronan Lyons asks in the report: "Are luxury condos the solution to Ireland's urban housing shortage?"

He adds: "There are simply not enough dwellings relative to families in Ireland's urban areas. To those living in many rural areas, blighted by half-built ghost estates, this may seem an odd solution. However, what first-time buyers prize now is access to amenities, in particular the amenity of job creation, which goes hand in hand with population density. The discount for distance from urban life has grown significantly in Ireland since 2006.

So far, so simple - build more family homes. And yet there is a further twist. Earlier this year, Ireland's Housing Agency commissioned research to investigate how best to deal with Ireland's demographic trends, in particular rising numbers of families living in or near cities and large towns. Their headline finding probably came as something of a surprise to most - there are enough family homes in Ireland.

The problem, of course, is that families are not the ones living in a large chunk of family homes. Instead, many of Ireland's most desirable family homes are lived in by empty nesters. What the Irish market lacks compared to its counterparts in other developed countries is both carrot and stick. The stick, for want of a better word, is property tax. In most developed countries, annual property tax bills for living in a family home are large enough that when the family home becomes an empty nest, the couple decide to downsize and save.

It may be an unpopular thing to say but - if we want housing in Ireland to be affordable - the Local Property Tax is far too low, rather than far too high. This, of course, is very easy for a commentator to say, but next to impossible for a government to bring in, unless of course it offered a revenue-neutral switch away from VAT and income tax, towards property tax.

Assuming that this will not happen in the next five years, what can be done? Well, if the stick does not exist, a bigger carrot is needed. Currently, an empty nester in Dublin looks around and sees very little that they could see themselves moving into in their early sixties. Talk of assisted living communities is certainly worthwhile - but is really a step further on, for people in their 80s, not their 60s, which is when the market needs movement."

Irish Home Prices 2014: Dublin prices surged 22% in 12 months to May

Dublin's net effective office rents surge 39.3% in 12 months - - fastest growth in Europe

Dublin housing rents surge; 39,250 BTL accounts in arrears

Irish home mortgages paid in Q1 2014 at lowest since 1972

One quarter of Irish households jobless; More than double EU average

Dublin Housing Crisis: 75 item laundry list doesn't make a strategy

Related Articles
Related Articles


© Copyright 2011 by Finfacts.com

Top of Page

Property
Latest Headlines
Irish residential rents rise 9% as students face tight market conditions
Irish construction activity growth eased in July
Irish residential property prices fell in Dublin in June
Irish mortgage approvals growth fell sharply in April 2015
Irish land prices among highest in world; Noonan tax cut boosts Dublin prices
AIB cuts Irish variable mortgage rates
Dublin residential property prices rose by 1.1% in March
Global property bubble: Dublin tops 2014 global returns at 44.7%
New Irish housing units in 2015 forecast at only 10,000
Ireland: Dublin house prices up 21% in year to February 2015 after price decline in month
Prime office rents in Dublin to rise by up to 31% in 2015 after 29% surge in 2014
Irish mortgages paid in 2014 at 1976 level; Half of house sales paid in cash
Irish residential property prices fell 1.4% nationwide in January
Irish House Rents: Supply tightens in Dublin's commuter counties in Q 42014
Irish commercial property returns in 2014 among highest in world
Irish Housing: "Unique" demographics to boost demand; Shortages to rise
Irish mortgage approvals in 2014 at 36-year low; Exceed paid loans
Irish commercial property investment in 2014 was 25% above bubble peak in 2006
Irish construction continues to rise from very low base
Irish house asking prices fell back slightly in fourth quarter of 2014
Price/Earnings multiple for Dublin houses is double 1993 level
Residential property rents up almost 10% in Dublin in past year
Irish Government and vested interests lobby for easing of Central Bank's mortgage rules
Ireland tops global property price rankings six years after bust
Number of Irish mortgages paid in 2014 at 1974/75 level - a 40 year-low
Irish construction PMI survey confidence measure highest since 2000
Irish mortgage arrears decline; 38,463 BTL accounts in arrears
Irish Housing: Renting provides less security than ownership, unpredictable rents
Ireland: NAMA to redeem €1bn of senior bonds; Fund Boland’s Mill site development
Ireland: 35,000 social housing units by 2020 achievable; Rental market possibly not
Dublin house prices up 24.1% in year to October 2014
Irish home ownership to fall due to affordability
'Tara Collection' of office buildings on sale in Dublin for €263.8m
Irish Housing Rents 2014: Dublin just 10% short of 2007 bubble peak
Irish Economy: Residential mortgage approvals in 2014 as low as in 1977
Irish Construction: Fastest rise in new business for decade - not level of activity
Biggest US individual landowner responds to tax breaks in Ireland and UK
Irish commercial property annual return to September 2014 at 36.6% - income at global high
NAMA expects surplus of less than €500m - it's not a profit; 88.5% sales to US investors
NAMA selling 588 Dublin apartments - name withheld in announcement