Skip to main content

Downturn Wipes 50pc Off Value Of Homes...

Economic downturn wipes 50pc off value of homes...



LARGE detached family homes in the capital have halved in value in the downturn.

Estate agents admit four- and five-bedroom detached properties in Dublin are now only fetching 50pc of their 2007 prices.

This means upwardly-mobile couples who shelled out an average of €1m at the height of the boom years are now sitting in a house worth just €500,000.

The Irish Auctioneers and Valuers Institute (IAVI), which represents auctioneers around the country, says that houses nationally are now worth 40pc less than at the peak.

Connacht has seen the smallest drop in house prices but even these are dramatic. The average two-bedroom townhouse in the region has fallen in value by 27.7pc.

Things are much worse in Dublin for struggling homeowners who are seeing themselves plunged further into negative equity as prices have plummeted by half. But this is all good news for buyers with cash today.

The IAVI annual property survey released shows that new two-bedroom townhouses in Dublin are down 36.3pc from their peak. Three-bed townhouses have fallen by 36.9pc and one- and two-bed apartments are down 42.8pc and 42.4pc respectively.

Also in the capital, three- and four-bedroom semis are down 35.3pc and 37.6pc and four- and five-bedroom detached houses are down 42.6pc.

Reductions in the Dublin second-hand homes market are more stark. One- and two-bed apartments are down 46.9pc and 47.8pc; two- and three-bed townhouses have fallen in value by 39.7pc and 41.3pc; and three- and four-bed semis have dropped by 41.4pc and 44.8pc.

The price drops in the rest of the country are also substantial. Three-bed semi-detached homes are down 37.4pc, 31.6pc and 32.8pc from peak prices in Leinster (excluding Dublin), Munster and Connacht respectively.

The IAVI figures, which are based on sale prices achieved, are a more accurate indicator of the market than other surveys, such as the recently released DAFT report which relies on advertised asking prices. The DAFT report put house prices nationally at 30pc lower than peak, pointing to a gap between asking prices and sale prices.

The IAVI survey also reports few sales in 2009 -- a year that was described as "perhaps one of the bleakest years the market has ever experienced in this country".

However, there are signs of recovery with agents reporting an increase in viewings towards the end of last year. Auctioneers in the Dublin area reported enquiries and viewings increased by a quarter and the number of sales closed was up 9pc.

IAVI president Aine Myler called on the Government to fast-track the planned national register of property prices to provide for transparency in the market and to restore consumer confidence, citing a possible bottoming out of the market.

"These annual results are in line with our expectations for 2009 and consistent with our belief that the average residential property values would decline 40pc to 50pc from peak to trough," she said.

"The survey results indicate that the market floor is close, if we have not reached it already."



Report by Yvonne Hogan - Irish Independent

Popular posts from this blog

Property Crash Homes For Sale...

Hundreds of repossessed homes in Ireland to be sold by auction... UK property consultancy Allsop to hold auction in April at Dublin's Shelbourne hotel: Flats in Ireland that could have fetched €150,000 in the Celtic Tiger years are to be put on the market for as little as €25,000 (£21,000) in the country's first ever mass auction of repossessed homes. And, in a sign of how wide the property crash is, the latest item to turn up in liquidation sales in Dublin is a job lot of 15 cranes, including a pair towering over Anglo Irish Bank's half-built headquarters in the city's docklands. "Tower cranes were among the most sought-after heavy plant and machinery 10 years ago," Ricky Wilson of Wilsons Auctions says. "You couldn't buy them quick enough. Now they are left idle for two or three years on sites." He has 15 cranes worth €500,000 going on sale on 26 March, with German, Dutch and Polish buyers expressing interest. But it is the auction ...

Property Ireland - Irish Land Values Go Up Like A Rocket & Fall Like A Stone...

Land values go up like a rocket and fall like a stone... SITE EVALUATION: Why would a developer bid €225,000 an acre in 1999 and €2.8m an acre in 2007? Bill Nowlan explains WHY HAS THE value of development land fallen so precipitously, by over 50 per cent in the past 12 months, when residential and other property values have only fallen by 25 per cent or 30 per cent? There is an old property cliché which says that "land values go up like a rocket and fall like a stone" and this seems to have been bourne out in Ireland over recent years. Why does this happen? To answer this question requires an insight into the way developers prepare their bids for development land and I set out below a glimpse into that process. Let me start by looking at how a developer in normal times estimates his bid for a plot of land with planning permission, which in estate agents' parlance is ready-to-go. The key starting point in a developers equations is the expected sale price of the finished b...

Ireland's Celtic Tiger Excesses...

'Bang twins' may never get to run a business again... POST-boom Ireland is awash with cautionary tales of Celtic Tiger excesses, as a rattle around the carcasses of fallen property developers and entrepreneurs will show. Few can compete with the so-called Bang twins for youth, glamour and tasteful extravagance. Simon and Christian Stokes, the 35-year-old identical twins behind Bang Cafe and exclusive private members club, Residence, saw their entire business go bust with debts of €9m, €3m of which is owed to the tax man. The debt may be in the ha'penny place compared with the eye-watering billions owed by some of their former customers. But their fall has been arguably steeper and more damning than some of the country's richest tycoons. Last week, further humiliation was heaped on them with revelations that even as their businesses were going under, the twins spent €146,000 of company money in 18 months on designer shopping sprees, five star holidays and sumptu...