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Surge in supply leaves rents flat

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  • 09-07-2008 11:24pm
    #1
    jetski
    Registered Users Posts: 820 ✭✭✭


    Surge in supply leaves rents flat
    Tuesday, 12 February 2008 16:14
    New figures today show that the supply of properties available to rent across the country increased by almost 50% in the last three months of 2007.

    Daft.ie's latest rental report says that this dramatic increase in supply has led to a levelling off in rents, with the average rent countrywide unchanged on the previous three months at €1,388.

    Daft says the increase in supply is probably due to investors releasing more properties onto the rental market, thus pushing up the overall level of supply.

    AdvertisementIt says that rental growth slowed to 4.3% year on year, the slowest pace since November 2005.

    'Rents have now stopped increasing for the first time since they started to rise in mid-2004, when Ireland opened its labour markets to the new EU members,' commented Daft's economist Ronan Lyons.

    He says the fact that rents have risen steadily since then shows the strong connection between the rental market and immigration.

    'Overall demand still remains strong, particularly in urban areas, and we do not foresee any major weakness while immigration remains at current levels,' he adds.

    The survey also shows that the stock of properties for rent on Daft.ie increased by 90% between January 2007 and January 2008, with half of this increase occurring in the final three months of 2007.

    It also reveals that the average yield nationwide for rental property is 3.2%, still below the cost of borrowing.

    http://www.rte.ie/business/2008/0212/daft.html


Comments

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    #2
    johnnyskeleton
    Moderators, Entertainment Moderators, Politics Moderators Posts: 14,466 Mod ✭✭✭✭johnnyskeleton


    I'm not having a go at you, but it's a bit of an old article.

    Rents have dropped significantly since then.

    Although it is odd the way it says that rental supply increased by 50% therefore rents levelled off. All things being equal, surely they should have fallen in that period.


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    #3
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Yeh, rental supply has doubled nationwide and in Dublin since last Sept.

    Of note:
    He says the fact that rents have risen steadily since then shows the strong connection between the rental market and immigration.

    That tells you a thousand words about how dependent the rental market is on immigrants.
    A question in which a 1st class pupil in primary school can answer no problem....What happens when alot of immigrants move on? :D


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