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Dublin overhang of 16,000 apartments

  • 11-08-2009 8:18am
    #1
    leonardjos
    Closed Accounts Posts: 102 ✭✭


    Dublin overhang of 16,000 apartments
    Dublin is suffering from an "overhang" of about 16,000 apartments as demand in the housing market remains anaemic and prices continue to slide, AIB has revealed.

    The country's second largest bank revealed during a conference call with analysts that it estimates the oversupply of apartments in Dublin to be "about 16,000''. The observation was made by the bank's chief executive Eugene Sheehy.

    Sheehy said the best way to help the property market and the banking sector was for more people to get mortgages and in that way development debt can be converted to mortgage debt.

    "We have a reasonable view of the kind of stock overhang that there is, probably be about 16,000 apartments in Dublin. We don't know how long that will take to work off, but certainly the supply side is going to be very tight,'' he said. "There's nothing coming on to the market for the next couple of years, I'd say,'' Sheehy added.

    Truly dismal reading for anyone who has bought an apartment in Dublin in recent years. One would imagine price levels will fall to bargain basement levels for apartments before 2010 is over.
    Tagged:


Comments

  • #2
    jmayo
    Registered Users, Registered Users 2 Posts: 13,189 ✭✭✭✭jmayo


    Not if the government and their NAMA plan has it's way, because they will try and limit the feed of these apartments onto the market.
    The plan is to sell the assets at some future time so that they can recoup the money paid for the toxic loans.
    To all intents and purposes it looks like they will sit on them until they believe the market has picked up, you know until we are paying prices like 2006 :rolleyes:

    I am not allowed discuss …



  • #3
    DublinDilbert
    Registered Users, Registered Users 2 Posts: 5,401 ✭✭✭DublinDilbert


    The stocking level also assumes that people currently living in appartments don't move out or emigrate.

    People are currently leaving appartments and moving into houses, as the cost of renting a house, is what the apartment was costing them 2 years ago..


  • #4
    the_syco
    Registered Users, Registered Users 2 Posts: 37,316 ✭✭✭✭the_syco


    They don't say where the houses are. For example: Adamstown was a f**king ghost town last time I drove through it. I wonder what percentage of that 16,000 apartments are in there...


  • #5
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    And there are a few hundred in the Docklands, i invite Mr Sheehy to come on down!

    "for more people to get mortgages"...reduce those prices first!


  • #6
    SkepticOne
    Closed Accounts Posts: 6,718 ✭✭✭SkepticOne


    gurramok wrote: »
    And there are a few hundred in the Docklands, i invite Mr Sheehy to come on down!

    "for more people to get mortgages"...reduce those prices first!
    They can't reduce them as this would place them below the cost of building them.






    ;)


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  • #7
    Salvelinus
    Closed Accounts Posts: 272 ✭✭Salvelinus


    SkepticOne wrote: »
    They can't reduce them as this would place them below the cost of building them.






    ;)

    Yes, the apartments built during the boom were of the highest quality.


  • #8
    seahorse
    Closed Accounts Posts: 1,164 ✭✭✭seahorse


    Are we going to see compulsory purchase orders and many of these apartments being assigned to the councils does anyone think? Have there been any noises about that in the media? If so, Ballymun here we go again..


  • #9
    stepbar
    Closed Accounts Posts: 6,123 ✭✭✭stepbar


    SkepticOne wrote: »
    They can't reduce them as this would place them below the cost of building them.






    ;)

    This is something that will have to change especially amoungst private home owners. They can't expect house prices to continually appreciate in the future. If there's anything to be learned from this recession it is this very fact.


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