Current public sentiment towards the housing market?

Status
Not open for further replies.
Cloragh Mills, Rathfarnam

New Build Price Drop....

Were €655,000 (duplex), €525,000(2 bed) and €395,000 (1 bed)


Click through for new prices on each of these (005, 007 and 008 from list above):
2 Bed Duplex reduced from €655,000 to €595,000
[broken link removed]=

2 Bed Apartments reduced from €525,000 to €505,000
[broken link removed]=

1 Bed Apartments reduced from €395,000 to €365,000
[broken link removed]=

Interesting to see new developments coming under pressure.
 
bo se said:
I see that the soft landing recently enjoyed in the UK has given way to a renewed boom in housing and mortgage approvals.
Click to expand...
You can not compare the UK property market with the Irish property market. 1 in 7 properties in Ireland are unoccupied, compared to 1 in 30 in the UK.
 
http://www.rte.ie/business/2006/1031/credit.html

Central bank numbers are out today, and show another slowdown since June. Still there is 302.7bn in private sector credit here, which is amazing. Also amazing is the fact that the value of outstanding residential mortgages have doubled in less three years. It went from about €60bn to €117bn in that time.

But all this has become seen to be 'normal behaviour' in recent times.
 
JayDub said:
You can not compare the UK property market with the Irish property market. 1 in 7 properties in Ireland are unoccupied, compared to 1 in 30 in the UK.
Click to expand...


Agreed, also we are building propotionally much more properties than the UK.
 
whathome said:
New Build Price Drop:

Cloragh Mills, Rathfarnam

Were €655,000 (duplex), €525,000(2 bed) and €395,000 (1 bed)


Click through for new prices on each of these (005, 007 and 008 from list above):
2 Bed Duplex reduced from €655,000 to €595,000
[broken link removed]=

2 Bed Apartment reduced from €525,000 to €505,000
[broken link removed]=

1 Bed Apartment reduced from €395,000 to €365,000
[broken link removed]=

Interesting to see new developments coming under pressure.
Click to expand...

This sort of development is sure to hurt the 2nd hand market as well. Most of the builders who bought the land a few years ago can afford to drastically cut their prices while still maintaining a sizeabele profit margin. As this is happening in a desirable area with the M50 I bet this will send shudders through some of the EA fraternity.

I think I will wait until one of these gems comes with a free Merc before taking the plunge.....:D
 
Panzraam said:
A new article from Davy showing that the loan-to-value break-even on an interest-only mortgage dropped from 75% to 58% between Q1 and Q4 2006. Plenty of other frightening facts for the would-be property investor. Just in time for Halloween!

http://www.davydirect.ie/other/pubarticles/residentialyields20061027.pdf

Investment Property anyone?
Click to expand...

I wonder what the break even loan to value break even is on a repayment mortage - say average 25 year variable? I did some quick calculations on residential returns on random properties (Dublin) and the real rate of return after all costs, voids etc (excluding capital appreciation) was between 1 and 2%. Anyone investing in property now would be taking a huge risk for no return.
 
beattie said:
I think I will wait until one of these gems comes with a free Merc before taking the plunge.....:D
Click to expand...


Actually - wait even longer, the way things are going, and it might be a case of one of these gems free with a merc purchase :D
 
I'm not sure if this is a nationwide trend, but in the Midlands I have seen a lot of "ready to go" developments for sale. There is one development in Mullingar with planning permission for 56 apartments, the price €5.6M. Thats a pre construction price tag of €100K per apartment which doesn't leave much room for profit considering a 2 bedroom apartment in Mullingar sells on between €225K-€250K. The property market here in Mullingar is already saturated, with over 200 properties listed in Daft and I know of one development where half of the homes remain unsold a year on and theres already over a dozen "for sale" signs in the occupied half.
 
JayDub said:
I'm not sure if this is a nationwide trend, but in the Midlands I have seen a lot of "ready to go" developments for sale. There is one development in Mullingar with planning permission for 56 apartments, the price €5.6M. Thats a pre construction price tag of €100K per apartment which doesn't leave much room for profit considering a 2 bedroom apartment in Mullingar sells on between €225K-€250K. The property market here in Mullingar is already saturated, with over 200 properties listed in Daft and I know of one development where half of the homes remain unsold a year on and theres already over a dozen "for sale" signs in the occupied half.
Click to expand...

This will be interesting to see if this shifts. Up to now there has been an insatiable appetite for development land but if this sort of property stays on the shelf it will represent a seismic change in sentiment IMO
 
beattie said:
This will be interesting to see if this shifts. Up to now there has been an insatiable appetite for development land but if this sort of property stays on the shelf it will represent a seismic change in sentiment IMO
Click to expand...
Here is the link to that development for sale,
 
JayDub said:
I'm not sure if this is a nationwide trend, but in the Midlands I have seen a lot of "ready to go" developments for sale. There is one development in Mullingar with planning permission for 56 apartments, the price €5.6M. Thats a pre construction price tag of €100K per apartment which doesn't leave much room for profit considering a 2 bedroom apartment in Mullingar sells on between €225K-€250K. The property market here in Mullingar is already saturated, with over 200 properties listed in Daft and I know of one development where half of the homes remain unsold a year on and theres already over a dozen "for sale" signs in the occupied half.
Click to expand...

All this was fine when prices were rising all the time. Between purchasing land and actually starting the development there could be a lag of about a year, and of course by the time the 3rd and 4th phases were complete a few years later prices may have risen 40-50%

I'd say a lot of developers would have made zero profit on 100 houses developments were it not for capital appreciation.
 
Mountseskin Court, Tallaght (Section 23)

Another new development price drop today:

1 Bed apartments reduced from €305,000 to €260,000
[broken link removed]

SBpost article from September:
[broken link removed]
 
Arthur Daley said:
http://www.rte.ie/business/2006/1031/credit.html

Still there is 302.7bn in private sector credit here, which is amazing. Also amazing is the fact that the value of outstanding residential mortgages have doubled in less three years. It went from about €60bn to €117bn in that time.
Click to expand...
IMO lending is simply booming. For mortgages we borrowed 100m euros every day the banks were open in September and in total the private sector borrowed a mere 275m euros a day. Most of the above is all heading for the property market.

E60b at 2% plus 1% margin in 2003 was 1800m a year in mortgage interest.
E120b at 3.5% plus 1% margin in December 2006 will be 5,400m a yr in mortgage interest.
Thats a trebling in interest cost in roughly 3 years or E70m a week extra.
 
miju said:
one of the dublin "equivalents" to moyross would be finglas south where you can buy a 3 bedroom house for about €155k
Click to expand...

Even in Finglas you wont get a 3-bed house for anywhere NEAR €155k.

Even the worst of Finglas South estates are asking between 290 and 317k.

Finglas is still very popular with Finglas people wanting to stay there.

Daft : http://tinyurl.com/y3sghf

F
 
Fredser said:
Even the worst of Finglas South estates are asking between 290 and 317k.
Click to expand...

3 Bed's in Finglas are asking less than that now:

Here's one at €270,000
[broken link removed]

And another two at €280,000
[broken link removed]
[broken link removed]
 
whathome said:
3 Bed's in Finglas are asking less than that now:

Here's one at €270,000
[broken link removed]

And another two at €280,000
[broken link removed]
[broken link removed]
Click to expand...

Ok - my 290k was slightly off !! :)

But 270k is still far away from the claimed 155k (for the moment)....
 
WhatHome....

I think you will find that thoses homes you are referring to in Finglas are in Dunsink. I would consider that a very good price when you consider the area.
 
Maine said:
IMO lending is simply booming.
Thats a trebling in interest cost in roughly 3 years or E70m a week extra.
Click to expand...

All this extra isn't as noticable because it's gone on the bit of a 'never never' combination of higher terms (like 35-40 years becoming standard for ftbs), and higher LTVs.

There is a definite slowdown in these Cent Bank numbers since June, but like the esri/daft indices it isn't substantial - yet.
 
Status
Not open for further replies.
Back
Top