Irish Property Market 2020 Part 2

SozBbz · 13-07-2020 11:52am

JimmyVik wrote: »

Id move down the country if i could work from home 5 days a week.
I would only get 3 days per week max so not attractive to me.

The other half will not change the kids schools though. So moving down the country is out for now.
Then there is the whole psychology of moving to another town. I would be ok with it, but other half wouldnt. Therefore thats out for that reason too.

Lots of foreigners who come to work in my company would just go home if the job wasnt in dublin. They will only live in Dublin.

Exactly -there are a lot of factors that impact on making such a move. Age is another one. In my 20's, I'd never have even continanced the notion. I'm in my 30's now and while I still wouldn't do it, the visceral aversion to the idea is definitely not what it was. Maybe in my 40's I'd actually like the idea, who knows. I could definitely see myself making moves when I'm older (50's+) but I'd probably still want to keep an apartment in Dublin while maybe splitting my time with a country cottage somewhere properly isolated and near a nice beach.

You have to get full WFH and agreement from all family members (or at least the adults) in order to move.

Theres a poster above who just said he had decided against buying in Dublin, but when you read the post, what he's decided is commuter belt over small city center house, so not exactly a rural idil.

cnocbui · 13-07-2020 12:55pm

Bass Reeves wrote: »

Just because people get the option to WFH it is unlikely that a large number of people will opt to change the location where they live. Yes so e who are renting may opt to move. However it is unlikely that the numbers who do will suddenly effect property prices. As well just because you get the option to WFH your partner/spouse may still be located in Dublin. As well if your skill/ career prospects are Dublin based ( financial services, tech based etc) it would not mean you suddenly up sticks and move to the stick.

Younger people are attracted to Dublin and the lifestyle it unlikely to change. As I posted as well technical difficulty for MN companies with WFH will have to be overcome as well

There is already anecdotal evidence from REAs in both the UK, US and Australia that there is a significant increase in interest in properties in rural towns and the like.

I am astonished it would happen this quickly.

Many Welsh towns are experiencing a boost in interest and some agents are on course to break sales records for June.

So far, that interest seems to be driven by people reassessing their lives during the coronavirus pandemic and the realisation that working from home is now a possibility.

Early signs suggest that there is a mini exodus from the bigger cities and parts of Wales are already benefiting, including places like Narberth, Crickhowell, Brecon and Aberdyfi.

https://twnews.co.uk/gb-news/more-people-expected-to-move-to-wales-after-coronavirus-as-they-can-work-from-home

City buyers seeking to secure a safe haven in the event of further COVID-19 lockdowns are driving a ‘super boom’ in rural real estate.

Inquiries on rural holdings in the southern Gold Coast hinterland and Tweed Shire have risen sharply as buyers act on plans for a pandemic-proof lifestyle.

“There has been a super boom in rural property inquiries,” said Christie’s Prestige Director Alex Caraco.

“We’ve had a 300 to 400 per cent rise during COVID-19 on vacant rural land in the Tallebudgera, Currumbin, Numinbah and Tweed valleys.”

https://www.realestate.com.au/news/covid19-lockdowns-drive-rural-real-estate-boom/

PommieBast · 13-07-2020 1:13pm

Queenio wrote: »

I suspect it's lack of supply and people not putting houses on the market atm for fear of getting a poor price. Im looking in a restricted south dublin area and not one house has been added in one of the more popular areas in the last two weeks apart from one house in very very poor condition for an executor sale. And I honestly think that one is completely over priced but it has had a very busy viewing within 48 hours

Sounding like a broken record but even before Covid-19 a lot of the stuff on the market were either dumps and/or had issues.

Since one of my working assumptions is that buying in Ireland means getting ripped off one way or another, the 10% or so drop in prices I have seen mooted in here is not in itself a reason for me to pull out.

JimmyVik · 13-07-2020 1:14pm

cnocbui wrote: »

There is already anecdotal evidence from REAs in both the UK, US and Australia that there is a significant increase in interest in properties in rural towns and the like.

I am astonished it would happen this quickly.

https://twnews.co.uk/gb-news/more-people-expected-to-move-to-wales-after-coronavirus-as-they-can-work-from-home

https://www.realestate.com.au/news/covid19-lockdowns-drive-rural-real-estate-boom/

More than likely people getting on the property ladder before this great recession locks them out of it.

Villa05 · 13-07-2020 4:00pm

JimmyVik wrote:

Cannot get vacant possession to sell.

Interesting, pent up demand meets pent up supply meets tighter lending. Add a pandemic plus Brexit

neutral guy · 13-07-2020 11:38pm

seenn00J wrote: »

I'd just like to add my 2c here, the reason people live in Dublin isn't just because they work there. Easier access to employment is a feature of most capital cities of the world alright, but I could list countless other reasons why it's a more favorable place to live than rural life in Longford or Westmeath. So WFH policies are not imo going to cause an exodus from Dublin and knock-on crash in property prices. Especially people who already have roots in the capital (family, friends, children's schools, etc).

The some of them does not have cars because due with high property rent/car insurance /parking space they cant afford it and travel to work with bike or bus.They are locked down in city because has no transport for traveling from outside city.Bassicaly they are hostages.In serious economy downturn they will be or are hit first and badly because many of them live from wage to wage.They will leave Dublin first or are leaving already.

Villa05 · 14-07-2020 8:59am

JimmyVik wrote:

I just read that the government are planning to buy up the excess airbnbs now. Also if they cant buy them they are going to try to get them on 25 year leases.
So they kill the value and earning power of these properties with rules and regulations and then swoop in to buy them cheaper themselves. If thats not market manipulation. I still dont think they will get them as cheap as they think they will.

I think you overestimate the Government. Seeing how they spend taxpayers money, it would not surprise me if they increased their value and earning power

I read that they solved the homeless issue by procuring holiday let's at full season price pre covid lock down

Complete and utter stupidity to be buying up airbnb"s. All of them were built as resedintial units. Enforce the law and keep them as resedintial units
0 cost to taxpayer

Airbnb is for the letting of a room in your own house which you live in not a completely empty unit

JimmyVik · 14-07-2020 9:16am

Villa05 wrote: »

I think you overestimate the Government. Seeing how they spend taxpayers money, it would not surprise me if they increased their value and earning power

I read that they solved the homeless issue by procuring holiday let's at full season price pre covid lock down

Complete and utter stupidity to be buying up airbnb"s. All of them were built as resedintial units. Enforce the law and keep them as resedintial units
0 cost to taxpayer

Airbnb is for the letting of a room in your own house which you live in not a completely empty unit

It looks to me like the problem is going to be that the government buy up or lease all property for social housing in the next few years, leaving very little for normal buyers, but costing the tax payer a fortune.
So not only basically the normal buyer is now bidding against the council, who are increasing prices and to add insult to injury using the normal buyers own money (taxes) to do this.
Pretty soon you wont be able to own a house unless you are given it by the council. Because there will be nothing left for you.

Bass Reeves · 14-07-2020 9:27am

JimmyVik wrote: »

It looks to me like the problem is going to be that the government buy up or lease all property for social housing in the next few years, leaving very little for normal buyers, but costing the tax payer a fortune.
So not only basically the normal buyer is now bidding against the council, who are increasing prices and to add insult to injury using the normal buyers own money (taxes) to do this.
Pretty soon you wont be able to own a house unless you are given it by the council. Because there will be nothing left for you.

Councils and cooperations buying existing housing stock adds nothing to supply. Supply is the only thing that will solve the housing crisis. Unless Local Authorities and housing Association's revamp existing stock and build new stock you are still dealing with the same supply. However LA have to be given the power to deal with anti social behaviour and as well with people who damage there housing stock.

If LA start to build numbers those renting to HAP tenants will start to sell up. LA could start to purchase some of these and other will purchase as family homes

Hubertj · 14-07-2020 10:00am

Villa05 wrote: »

I think you overestimate the Government. Seeing how they spend taxpayers money, it would not surprise me if they increased their value and earning power

I read that they solved the homeless issue by procuring holiday let's at full season price pre covid lock down

Complete and utter stupidity to be buying up airbnb"s. All of them were built as resedintial units. Enforce the law and keep them as resedintial units
0 cost to taxpayer

Airbnb is for the letting of a room in your own house which you live in not a completely empty unit

I don’t agree with not being able to let a full house or apartment at least some of the time. Many families would be unable to afford vacations if hotels were the only option.

Villa05 · 14-07-2020 10:13am

JimmyVik wrote:

It looks to me like the problem is going to be that the government buy up or lease all property for social housing in the next few years, leaving very little for normal buyers, but costing the tax payer a fortune. So not only basically the normal buyer is now bidding against the council, who are increasing prices and to add insult to injury using the normal buyers own money (taxes) to do this. Pretty soon you wont be able to own a house unless you are given it by the council. Because there will be nothing left for you.

That appears to be the plan. There is an article in the Irish Times today saying as much, will post later. Wealth funds are lining up to avail of those 750k leases on 2 bed apartments with the state responsible for maintenance

I think the one positive from Government policy is that no country will ever have to invade us as what country would risk their own citizens life's when our Government will bow to anyone coming flashing a bit of printed money

Shocking stuff

I would advise any Ftb to approach/contact their local government TD to explain this nonsense and why they are using your taxpayers money to make your life more difficult and enriching foreign property funds

Villa05 · 14-07-2020 10:59am

Hubertj wrote:

I donâ€™t agree with not being able to let a full house or apartment at least some of the time. Many families would be unable to afford vacations if hotels were the only option.

If its your principle private residence, there is no issue with that.

There are over 60, 000 houses legally classed as holiday homes in Ireland plus the plethora of hotels built during the course of the last boom/bust cycle
Plus student accomodation that is available for tourists during peak season. There is no shortage of holiday lets

Implement the laws of the land and make residential property solely for residential purposes. Stop wasting money buying property that is not abiding by those conditions

errlloyd · 14-07-2020 11:10am

Villa05 wrote: »

There are over 60, 000 houses legally classed as holiday homes in Ireland plus the plethora of hotels built during the course of the last boom/bust cycle
Plus student accomodation that is available for tourists during peak season. There is no shortage of holiday lets

I think the building of housing should be prioritised over the building of hotels. And I think that short term lets should be regulated.

But there absolutely is a shortage of holiday lets and definitely a shortage of hotel space. I think if the government legislation (90 day limit) was actually enforceable / enforced it would be a fine compromise.

Hubertj · 14-07-2020 11:25am

Villa05 wrote: »

If its your principle private residence, there is no issue with that.

There are over 60, 000 houses legally classed as holiday homes in Ireland plus the plethora of hotels built during the course of the last boom/bust cycle
Plus student accomodation that is available for tourists during peak season. There is no shortage of holiday lets

Implement the laws of the land and make residential property solely for residential purposes. Stop wasting money buying property that is not abiding by those conditions

how many holiday homes are in Dublin?

Villa05 · 14-07-2020 12:31pm

Hubertj wrote: »

how many holiday homes are in Dublin?

Whats more important? Housing for people working there or people there for a couple of nights

Villa05 · 14-07-2020 12:37pm

https://www.irishtimes.com/business/commercial-property/social-housing-expected-to-attract-considerable-private-investment-1.4303260?localLinksEnabled=false

In a new report, published on Monday, the real estate group said there had been “increased demand” over the past six months, with investors “keen to acquire residential units and schemes let to local authorities on long-term leases”
........The increased demand from investors in the sector is attributed to the “long-term secure income stream” guaranteed from a local authority or an Approved Housing Body.

“Investors get the benefit of long-term secure income with little or no day-to-day management, repair or maintenance responsibility, while the local authority or AHB gets access to housing to enable them to reduce their housing lists,” the report said

Villa05 · 14-07-2020 12:40pm

From the same article

Separately, office take-up in Dublin during the second quarter reached only 9,885sq m, which was the lowest quarterly take-up ever recorded in the capital, according to another report from CBRE.
It noted that many transactions were cancelled or put on hold as a result of the Covid-19 lockdown.

Roberto_gas · 14-07-2020 12:43pm

Couple of firends bought houses as they got calls where they were outbid ! Possibly someone pulled out due to COVID and they were able to buy the houses...in general lots of new properties coming up in south dublin which was never the case...Bids are still over asking for few.

Supply is where i think there is some impact...none on prices ! The wait continues

boma_12 · 14-07-2020 12:44pm

definitely 2008 all over again -with business as usual attitude in Ire, but it will hit big time --- the first wave of redundancies started in UK -Ire will follow , by October mortgage holidays will be over and furlough will end, what does that mean? Next step => end of October second wave corona virus and lockdown, more business will fly ,more redundancies and martial law in US.. The FED,banks,NAMA will be buying these distressed businesses for peanuts, all in progress as designed..

Villa05 · 14-07-2020 12:47pm

WFH gaining in popularity only 1 in 6 want to revert to a 5 day in office work week

24% want to WFH 2 to 3 days a week
20% want to WFH 1 to 2 days a week
20% want to WFH 3 to 4 days a week

AIB Survey

wassie · 14-07-2020 2:47pm

errlloyd wrote: »

I think the building of housing should be prioritised over the building of hotels. And I think that short term lets should be regulated.

But there absolutely is a shortage of holiday lets and definitely a shortage of hotel space. I think if the government legislation (90 day limit) was actually enforceable / enforced it would be a fine compromise.

Whilst I agree that housing should be prioritised, its worth remembering that hotel & short term accommodation, especially around Dublin region, is critical for economic activity during the working week for business travellers and construction workers.

ELM327 · 14-07-2020 2:53pm

Villa05 wrote: »

WFH gaining in popularity only 1 in 6 want to revert to a 5 day in office work week

24% want to WFH 2 to 3 days a week
20% want to WFH 1 to 2 days a week
20% want to WFH 3 to 4 days a week

AIB Survey

Not surprising at all.
The old 5 day presenteeism office week is dead.

Naos · 14-07-2020 3:11pm

Villa05 wrote: »

If its your principle private residence, there is no issue with that.

There are over 60, 000 houses legally classed as holiday homes in Ireland plus the plethora of hotels built during the course of the last boom/bust cycle
Plus student accomodation that is available for tourists during peak season. There is no shortage of holiday lets

Implement the laws of the land and make residential property solely for residential purposes. Stop wasting money buying property that is not abiding by those conditions

So just to clarify (and please note, I do not own two homes):

If I choose to save my money over a number of years and buy or build a second home as a holiday home, where I will be contributing to the local employment & local economy as opposed to pissing it away on holidays abroad, I should not be allowed to do so?

Claw Hammer · 14-07-2020 3:39pm

Naos wrote: »

So just to clarify (and please note, I do not own two homes):

If I choose to save my money over a number of years and buy or build a second home as a holiday home, where I will be contributing to the local employment & local economy as opposed to pissing it away on holidays abroad, I should not be allowed to do so?

After the initial build, during which your builders will buy a few pints and roles in the local pubs and shops, you will contribute little or nothing to the local economy. You will make it harder for locals to obtain housing as you have taken a site. You will spend very little money in your holiday area, as you will be mostly self catering and quite likely bringing in your supplies from outside the area. Unoccupied holiday homes in resort areas are a blight. They contribute very little to the local economy and cause a lot of problems.

fliball123 · 14-07-2020 3:44pm

Claw Hammer wrote: »

After the initial build, during which your builders will buy a few pints and roles in the local pubs and shops, you will contribute little or nothing to the local economy. You will make it harder for locals to obtain housing as you have taken a site. You will spend very little money in your holiday area, as you will be mostly self catering and quite likely bringing in your supplies from outside the area. Unoccupied holiday homes in resort areas are a blight. They contribute very little to the local economy and cause a lot of problems.

As is that persons right, if someone wants the site let them buy it themselves. Who are you to tell anyone how to spend their money its hard enough to earn it. If this person wants to build a holiday home so when they have down time they can relax in their own space why should they not be allowed to

Claw Hammer · 14-07-2020 3:46pm

fliball123 wrote: »

As is that persons right, if someone wants the site let them buy it themselves. Who are you to tell anyone how to spend their money its hard enough to earn it. If this person wants to build a holiday home so when they have down time they can relax in their own space why should they not be allowed to

Public policy. Is one house not enough for you?

LasersGoPewPew · 14-07-2020 3:50pm

The government is allowing investment funds to buy up 95% of 3644 new apartments. Developers are only happy to offload in bulk because it saves them hassle and keeps cash flow going and profits flowing, but this prevents 3462 people from owning a home. This is increasing competition among first time buyers and keeps prices inflated by limiting supply, this is part of the reason why we're not seeing drops in desirable areas. The government needs to be lobbied to limit how many apartments or new developments can be purchased by investment funds, they are contributing to this crisis.

https://www.google.com/amp/s/www.irishtimes.com/business/construction/just-8-000-houses-built-last-year-offered-for-sale-on-open-market-says-cif-1.4177876%3fmode=amp

Claw Hammer · 14-07-2020 3:52pm

LasersGoPewPew wrote: »

The government is allowing investment funds to buy up 95% of 3644 new apartments. Developers are only happy to offload in bulk because it saves them hassle and keeps cash flow going and profits flowing, but this prevents 3462 people from owning a home. This is increasing competition among first time buyers and keeps prices inflated by limiting supply, this is part of the reason why we're not seeing drops in desirable areas. The government needs to be lobbied to limit how many apartments or new developments can be purchased by investment funds, they are contributing to this crisis.

https://www.google.com/amp/s/www.irishtimes.com/business/construction/just-8-000-houses-built-last-year-offered-for-sale-on-open-market-says-cif-1.4177876%3fmode=amp

A lot of those apartments would never be built at all if it wasn't for the investment funds. Builders can't afford to spec build for individual buyers any more.

0gac3yjefb5sv7 · 14-07-2020 4:03pm

Quick Question. Looking at a property in Dublin that was sold in 2010 and comparing it against once that is closing sale now.

From the CSO PPI, it says from March 2010, the index is at 91.8 in Dublin. It is now at 123.9. Does that mean a property that sold in Dublin for 200k in March 2010 should be (129.9-91.8 = 32.1%) should be approximately 200*1.321 = 264k?

LasersGoPewPew · 14-07-2020 4:03pm

Claw Hammer wrote: »

A lot of those apartments would never be built at all if it wasn't for the investment funds. Builders can't afford to spec build for individual buyers any more.

I don't see why the two majority state owned banks can't fund these developments. With Irelands favourable credit rating and the low cost of borrowing these in the past few years the government could float some bonds, inject this capital into the state owned banks and direct it to fund property developers who are building big developments. The properties sell, developers get their profits, banks get paid, and the state reclaims their investment via dividend, VAT and other charges like property tax.

Bass Reeves · 14-07-2020 4:11pm

MattS1 wrote: »

Quick Question. Looking at a property in Dublin that was sold in 2010 and comparing it against once that is closing sale now.

From the CSO PPI, it says from March 2010, the index is at 91.8 in Dublin. It is now at 123.9. Does that mean a property that sold in Dublin for 200k in March 2010 should be (129.9-91.8 = 32.1%) should be approximately 200*1.321 = 264k?

No it over 40%increase 129.9/91.8=1.415 or a 41.5%increase in price. Hose that was 200k would be technically worth 283k. However this is an inexact science. It would be dependent on quality of house then and now good residential then via a ln ex rental now or a distressed property as old by auction via family home now

Knex* · 14-07-2020 4:14pm

Yeah, I don't necessarily think allowing REITS etc. to fund the new build apartments is the issue. More that we don't punish them for then hoarding empty homes and trying to manipulate the market.

The argument in favour of offloading the risk to investment funds to finance the construction isn't a terrible one. We just don't follow up with the necessary taxes or laws to balance it out.

fliball123 · 14-07-2020 4:16pm

Claw Hammer wrote: »

Public policy. Is one house not enough for you?

Listen you keep your business to yourself what you have and dont have and i will do the same, the head on you, you cant buy something you want. I suppose I will only be allowed have one kid to save money on children's allowance, or will we all just get rid of the car and walk to save the planet.

If someone has worked their hole off to get ahead they should be allowed spend that money on what ever they like

Why don't you just go full commi and everyone earns the same and gets the same no matter what.

Naos · 14-07-2020 4:19pm

Claw Hammer wrote: »

After the initial build, during which your builders will buy a few pints and roles in the local pubs and shops, you will contribute little or nothing to the local economy. You will make it harder for locals to obtain housing as you have taken a site. You will spend very little money in your holiday area, as you will be mostly self catering and quite likely bringing in your supplies from outside the area. Unoccupied holiday homes in resort areas are a blight. They contribute very little to the local economy and cause a lot of problems.

So it's better if I spend my money abroad than in my own country?

What If I do contribute to the local economy when I'm down there? What if I drink in the pubs, I eat in the restaurants, I buy ice-cream near the beach, I buy food in the local shops..?

PokeHerKing · 14-07-2020 4:26pm

ELM327 wrote: »

Not surprising at all.
The old 5 day presenteeism office week is dead.

If it is (which I personally don't believe it is) there'll be just as many downsides as upsides. People should be careful what they wish for.

cnocbui · 14-07-2020 5:19pm

Claw Hammer wrote: »

A lot of those apartments would never be built at all if it wasn't for the investment funds. Builders can't afford to spec build for individual buyers any more.

That is largely untrue. The investment funds that bought over 90% of the newbuild apartments in 2019 did not put up the funds to have them built. They bought them after completion.

cnocbui · 14-07-2020 5:25pm

Villa05 wrote: »

Whats more important? Housing for people working there or people there for a couple of nights

Possibly the latter, in terms of contribution to the economy, if occupancy was 85%, say.

Villa05 · 14-07-2020 6:42pm

Naos wrote:

If I choose to save my money over a number of years and buy or build a second home as a holiday home, where I will be contributing to the local employment & local economy as opposed to pissing it away on holidays abroad, I should not be allowed to do so?

No issue if that is declared in the planning permission

Villa05 · 14-07-2020 6:49pm

cnocbui wrote:

Possibly the latter, in terms of contribution to the economy, if occupancy was 85%, say.

If that is the case, would it not make sense for the private market to build accomodation for that purpose rather than pulling stock from existing residential stock.

cnocbui · 14-07-2020 6:54pm

Villa05 wrote: »

If that is the case, would it not make sense for the private market to build accomodation for that purpose rather than pulling stock from existing residential stock.

Isn't that exactly what a house on AirBnb is?

boma_12 · 14-07-2020 8:01pm

investment funds do buy lots of new apartments but for a special discounted price, which the Irish people would never get -just check Abelard Square, Phoenix Park Racecourse, Dublin 15 in property register from 2020-06-10 -at least 30 went for 260k average, can you get that price??? Exactly one hand moisturizes another one..

kippy · 14-07-2020 8:03pm

boma_12 wrote: »

investment funds do buy lots of new apartments but for a special discounted price, which the Irish people would never get -just check Abelard Square, Phoenix Park Racecourse, Dublin 15 in property register from 2020-06-10 -at least 30 went for 260k average, can you get that price??? Exactly one hand moisturizes another one..

If you are buying 30 you probably could to be fair.....like most things.

Villa05 · 14-07-2020 8:26pm

boma_12 wrote:

investment funds do buy lots of new apartments but for a special discounted price, which the Irish people would never get -just check Abelard Square, Phoenix Park Racecourse, Dublin 15 in property register from 2020-06-10 -at least 30 went for 260k average, can you get that price??? Exactly one hand moisturizes another one..

If the state was buying them they would be 500k

I'm sure the builder did not make a loss on them either. Kind of rubbishes the claims you see bandied about with regards to the cost of construction.

Irish people are taken for fools in every aspect of property, heavily supported by the Gov of course

Hubertj · 15-07-2020 6:13am

Villa05 wrote: »

If the state was buying them they would be 500k

I'm sure the builder did not make a loss on them either. Kind of rubbishes the claims you see bandied about with regards to the cost of construction.

Irish people are taken for fools in every aspect of property, heavily supported by the Gov of course

And you think they could deliver large scale housing projects? Government departments and councils have been a joke for decades. That won’t change no matter who is in government or what the policy is.

JimmyVik · 15-07-2020 8:22am

LasersGoPewPew wrote: »

The government is allowing investment funds to buy up 95% of 3644 new apartments. Developers are only happy to offload in bulk because it saves them hassle and keeps cash flow going and profits flowing, but this prevents 3462 people from owning a home. This is increasing competition among first time buyers and keeps prices inflated by limiting supply, this is part of the reason why we're not seeing drops in desirable areas. The government needs to be lobbied to limit how many apartments or new developments can be purchased by investment funds, they are contributing to this crisis.

https://www.google.com/amp/s/www.irishtimes.com/business/construction/just-8-000-houses-built-last-year-offered-for-sale-on-open-market-says-cif-1.4177876%3fmode=amp

The government are buying them up and renting them off the REITs too. So they are complicit

Assetbacked · 15-07-2020 11:58am

Claw Hammer wrote: »

A lot of those apartments would never be built at all if it wasn't for the investment funds. Builders can't afford to spec build for individual buyers any more.

This is absolutely spoof that the CIF and other industry lobbyists wheel out. Do you think there are no Irish people willing to buy new apartments? Of course there are but they are elbowed out by the insititutionals.

Claw Hammer · 15-07-2020 12:01pm

Assetbacked wrote: »

This is absolutely spoof that the CIF and other industry lobbyists wheel out. Do you think there are no Irish people willing to buy new apartments? Of course there are but they are elbowed out by the insititutionals.

There may be people willing to buy new apartments. The problem is those willing to build them? Where do you think such people get their finance?

Assetbacked · 15-07-2020 12:06pm

Claw Hammer wrote: »

There may be people willing to buy new apartments. The problem is those willing to build them? Where do you think such people get their finance?

If they weren't being built to rent they would be built to sell and money would be made. Those with the money to build them would still make money.

Claw Hammer · 15-07-2020 12:12pm

Assetbacked wrote: »

If they weren't being built to rent they would be built to sell and money would be made. Those with the money to build them would still make money.

If they weren't being built to rent they may well not be built at all. The developers don't have the money, they rely on finance. Finance perspective building is extremely expensive. The general situation facing developers is that they get no credit for building materials and have to pay for labour as the build progresses. If there is large interest accruing on this it can make the development on profitable. If anything goes wrong such as a delay the whole thing becomes a zero-sum game. The funds approach a developer and offer to provide funding as the build progresses and pay a fixed sum at the end. This removes all the uncertainty and enables projects to start and move the completion. It is nonsense to suggest that the development would be built anyway. Very few would.

Iceman29 · 15-07-2020 12:23pm

https://www.irishtimes.com/business/economy/property-price-growth-slowed-in-may-as-transactions-plunged-1.4305091?mode=sample&auth-failed=1&pw-origin=https%3A%2F%2Fwww.irishtimes.com%2Fbusiness%2Feconomy%2Fproperty-price-growth-slowed-in-may-as-transactions-plunged-1.4305091

Things aren't looking too rosy for house prices... looks like there was a decrease before this Covid-19 sh1tstorm arrived.
Residential property prices rose only 0.3 per cent across the State in the 12 months to the end of May while prices in Dublin were unchanged, according to the Central Statistics Office (CSO).

The data shows that growth in property prices is continuing to slow down. In the year to April, prices rose 0.7 per cent.

Irish Property Market 2020 Part 2

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