Irish Property Market chat II - *read mod note post #1 before posting*

For context the highest contributor to the corporation tax pool for 2025 was eli lily with a figure over 6billion. This was more than double the corporation tax they paid in the USA

One would seriously question if this was sustainable and consider using the proceeds for a series of one off capital projects

The sum of 6 billion would deliver 20,000 homes on state land at 300k a pop. Rent them out at affordable rates to workers, open to all with rent determined as an acceptable percentage of the occupants income.

Use the income stream to expand and build more. Does that sound like something that could move the needle in helping to resolve the issue in a prudent sustainable manner

A scheme that benefits everyone

For a mortgage holder it means a higher price to maintain a mortgage. Therefore the price paid every month to the bank goes up. Or another way to phrase it, the price rises

The cost of debt rises, the cost of goods (including houses!) drops.

Thats how interest rates work, they dampen demand by restricting access to credit. Less demand = lower costs of goods.

Let's see how it works when the driver is the cost of inputs into producing goods, such as oil, chemicals, gas, electricity fertilizer etc

Plus a sector in a bubble building out data centers which most believe will replace workers

The inflation will dampen demand, the rate rises will probably be overkill

Watch the response of the euro in the coming months in response to the rate rises to see where we are going

Well yeah I don't mind paying more for my mortgage if the price of bread and milk etc drops by a similar amount... That didn't happen last time though after the Russian invasion of Ukraine so I'd be surprised if it happened this time.

Correct me if I'm wrong, but was the FTB grant increased in response to the last interest rate hike cycle in 22/23. In addition we had the first home schemes.

These were not paired back when interest rates subsequently fell back but further added to with incentives for developers

There's not much point in implementing steps to fight inflation when government is pumping the largest contributor to inflation, housing

The ECB implementing one measure to fight inflation is pointless if government is bringing in measures that exponentially make it worse

Sounds sensible but the biggest issue is we dont have the workers to build 20k homes additional to what is going on at the moment. The government should be doing what the middle east do for teachers - free accommodation and tax free. Entice a load of builders over here from all over the world put them up give them incentives as in x amount of houses means you pay zero tax and scale it up. If they are 10% behind in building houses as to where they should be they pay 10% of the monies on tax and so on. Give them 10 years to make hay and give them a very tight schedule to follow. After 10 years re-assess. The only issue I see is getting them accommodation. But they could start with say 20 builders/sparks/plumbers etc put them in a hotel and as they are building they can stay in the houses they have built temporarily so for a year or 2 they would be building to temporarily house themselves then 8 years of nothing but supply for rent via a gov agency these houses/rents need to stay in government hands and used for supply to those who need it and it would be a nice revenue stream as well over time.

Its already happening and if you think AIB/BOI and the rest of the banks will not follow suit or else they will lose out competitively when people start going to Avant money for mortgages as they are willing to lend them more.

https://www.avantmoney.ie/mortgages?utm_medium=cpc&utm_source=google&utm_campaign=conversion_paid-search_mortgages_generic-acquisition-campaign&utm_content=146305540236&utm_term=mortgage%20application&utm_marketing_tactic=p&gclsrc=aw.ds&gad_source=1&gad_campaignid=19721073005&gbraid=0AAAAABglvpr6eURQQ-4JFg2FdhJ3tdiap&gclid=Cj0KCQjwornRBhCrARIsAON5exH48X2KTzKEfgbN67nuLXQqRp44yippFznVd8MXPYpSbSaKU6SNMAMaAhkXEALw_wcB

The number of new homes built last year was the highest number for 17 years & should be higher again this year.

i think around one third. Which is too low.

As someone mentioned above; the Irish property market has been designed to keep rents and house prices high; it has been like this post-08 with Michael Noonan explicitly stating it and not one measure since then has been brought in with the specific aim of causing rents and house prices to fall. The government only talk of making houses more affordable which is gaslighting as this does not necessarily mean rents and house prices should fall.

The amount of good corporate tax squandered in this pyramid scheme the last 10 years is scandalous and all it takes is for a bit if a hit to this largely illgotten corporate tax for the rug to be pulled out of the housing market.

The solution to build more housing of all types is easy and there is nothing more to it, except the political willpower to actually want to do it; but we all know more supply equals lower prices.

Property prices confirmed to be falling in Dublin:

https://www.rte.ie/news/ireland/2026/0623/1579806-house-prices-report/

The selling prices of homes in Dublin have begun to fall, according to the latest sales report from property website Daft.ie.

The research found that in June house and apartment selling prices in the capital were 2.3% lower than the same month in 2025 - the first annual decline since 2023.

Good few houses going sale agreed then falling through and back on the market.

Few areas where estate agents added an extra 100k on the asking price compared with couple of years ago are not shifting but sitting there.

Another issue I noticed is the square meters advertised on few, some estate agents are not measuring properly the houses advertising a higher square metres than the property really is.

I remember this from helping the kids look for houses - the number of listings that didn't even include a floor plan was incredible. Worst was going to look at a place advertised as a 2 bed that only had one bedroom - and photos engineered to make it look like there were two - God knows why.