Kick-Starting the Property Market: Getting the property market functioning properly again is a condition of strong economic recovery. This will require MAMA to dispose of property assets secured from developers in default of their loans into the priwte sectoras quickly as possible. We are open to considering new types of investment vehicles such as us style Real Estate Investment Trusts , that can help create a new, liquid investment market in commercial property for Irish pension funds and smaller investors.
Graham wrote: » Local demand isn't the same as overall demand. I seriously doubt you're going to let 300 units simultaneously unless you take a serious hit on rents. Drip feeding them to market sounds like a sensible option. Even more so with a pandemic going on around us.
schmittel wrote: » It's abnormally high for a city in a housing crisis. And it's not too far off the rate at which Paris thought it necessary to triple their vacant property tax. It's pretty high.
HansKroenke wrote: » Notwithstanding the vacant units, prepare to see a significant increase in institutional activity in the residential sector in Ireland. Demand is going to bounce back in Q2 this year as it is clear central banks are going to try to slowly take the foot off the QE gas which means the cheap money and low interest rates will remain as part of the genesis of the post-covid recovery. We still have a lot of demand for rentals in particular in Ireland and it is clear that the current government are going to continue along the path of bringing in the institutional cash (which at least offloads the risk from the Irish tax payer should the whole thing crash) which means it is a win win for investors; demand will bring yield and the property will be a good inflation hedge.
Timing belt wrote: » The central bank assume a healthy property market would have vacant properties of 6%.....Dublin had a overall vacancy rate of 7% in the 2016 census. The figures for Dublin at the 2016 census showed 35,293 vacant properties (including stock for rent and sale) in Dublin even if all of these were released onto the housing market and there was no stock for rent or sale we would still need to build to deal with the housing crisis.
schmittel wrote: » If a healthy property market has a 6% vacancy rate what vacancy rate would you expect in one suffering from a chronic shortage of housing stock? Less than 6%. Hence 7% is abnormally high under the circumstances.
HansKroenke wrote: » It's a bit of a loaded question there. Is less than 6% actually healthy or just normal in some markets where there are dozens or hundreds of other relevant variables? And what does a "chronic shortage of housing" actually mean?
schmittel wrote: » To be clear - I don’t believe their is a chronic shortage of housing stock. If there was such a shortage our vacancy figures would be about half of what they actually are.
Timing belt wrote: » are you saying that there is no need to build new properties because you believe that we have enough?
schmittel wrote: » I am saying we don’t have a crisis. We don’t need to build 30k a year or 50k a year or whatever the latest loony figures thrown about are. I am saying we don’t need to focus all energies on build, build, build as we are currently doing. That is different to saying we don’t need to build anything.
Marius34 wrote: » I believe is normal international cities to have higher temporal vacancy. The more international city, the more movement you can expect, as people are more active, and there are more movement. I don't see the point why to count temporal vacancy, properties ready for demolition, properties under construction. How you can release it, for that temporal vacancy period? Give a fine if person leaves home for a week? Give a fine if construction company delivered house 3 months after roof got constructed? Give a fine if person took 3 months to move in after he received keys?
Timing belt wrote: » You advocate lower property prices so how do you achieve this with your vacant properties? I am of the opinion that the more we build the lower prices in rent and property prices will be in the long term. I have shared the research papers that back up this opinion https://research.stlouisfed.org/wp/more/2020-047 Even if property developers are keeping properties of the rental market they will be less reluctant to do that if there is an increase in supply coming.
Timing belt wrote: » This is what I found on the internet for vacancy levels for major cities
Timing belt wrote: » I am of the opinion that the more we build the lower prices in rent and property prices will be in the long term.
Timing belt wrote: » Vacancy Rates by EU Country 2011 census data (This is the most recent data that I can find on the EUROSTAT website that shows all countries and regions) (Source: https://ec.europa.eu/eurostat/databrowser/view/CENS_11DWOB_R3__custom_463235/default/table?lang=en))
Billythekid19 wrote: » Fairly mixed predictions in todays papers for property prices 2021: Irish Times- Irish house prices set to rise by 4% in 2021, surveyors say Examiner- Munster house prices expected to increase by 5% this year Irish Independent- House prices to rise by up to 6pc as more people work from home
bilbot79 wrote: » I find some articles say people are moving out of Dublin, driving up the national house price while another would say 'we see no evidence of flight from Dublin to the country' yada yada yada
Marius34 wrote: I believe is normal international cities to have higher temporal vacancy. The more international city, the more movement you can expect, as people are more active, and there are more movement. I don't see the point why to count temporal vacancy, properties ready for demolition, properties under construction. How you can release it, for that temporal vacancy period? Give a fine if person leaves home for a week? Give a fine if construction company delivered house 3 months after roof got constructed? Give a fine if person took 3 months to move in after he received keys?
Villa05 wrote: » Can you explain why one landlord/investment trust would have a vacancy rate of greater than 50% on a development in a City with an apparent housing crisis? Can you explain why same would be getting preferential tax treatment from the state? It does seem a bit of an obscene situation
PropQueries wrote: » As one poster recently made the point, once interest rates move up to zero, not 1%, 4% etc. but zero, the investors sitting on these vacant properties will start demanding some level of return i.e. they will have to/be forced to rent them out.
Marius34 wrote: » I have seen no information about it, why some takes longer to fill up empty properties, others quicker. I'm not a fan of conspiracy, thus can't answer your question, nor I'm interested in unique high end properties, for me it's more important what's going on with majority regular properties, as that's where regular citizens live.
