Daft Property - Irish Property News

Average house prices in Northern Ireland fell by almost 8 per cent last year. The average cost of a house was £149,795 (€178,000), according to a University of Ulster (UU) survey. The number of sales also fell. Cold weather affected activity around Christmas although the market showed signs of stabilising towards the end of the year. One of the UU survey authors, Professor Alastair Adair, said: “The second half of 2010 has been a difficult period for the housing market in Northern Ireland, contrasting with the tentative signs of recovery in the first half of the year. “It seems that the prospects for the UK economy, local fears of public sector cuts and possible contagion effects from the Irish economy may have dented confidence in the local market and that the severe weather conditions may have impacted on sales volumes in the final quarter.” A total of 110 estate agents were surveyed about activity late last year for the UU, Bank of Ireland and Housing Executive Quarterly H...

A momentous year which went from bad to worse... Siobhan Creaton uses the alphabet to summarise the main events of what proved to be a tumultuous year for Ireland A The nightmare that is Anglo Irish Bank continued in 2010 when its staggering €35bn of bad loans finally bankrupted the country. Some of the bank's top brass were arrested and questioned by gardai, and the Director for Public Prosecutions will decide next year whether they will face charges for their recklessness. Sean FitzPatrick did suffer the humiliation of being made bankrupt while his protege David Drumm filed for bankruptcy in the US where he may fare better in the long run. For many months politicians dithered and differed over how to solve the Anglo problem before finally agreeing to wind it down. So in 2011 Anglo Irish Bank will disappear forever but Irish taxpayers will be paying for its failure for many years to come. B 2010 will go down in history as the year when Ireland agreed to take an €85bn bailout from ...

The Economist is at us again: in its survey of global house prices out at the weekend, it said that only four of the 20 markets surveyed had posted year-on-year price declines and only Ireland’s property catastrophe had worsened. We came bottom of its league, with a 17 per cent fall in prices between the third quarters of 2009 and 2010. In another global house price survey, this one from estate agency Knight Frank comparing the second quarters of both years, we only came second from the bottom – Estonia recorded price drops of 31.5 per cent, nearly double the fall here, again, given as 17 per cent. Cold comfort, of course, when the story told by both surveys is that property markets across the world are getting back on their feet, with Asia’s price rises leading the way – and we’re not at the party. If you’re emigrating to Australia and thinking of buying, read The Economist’s words of warning. Aussie house prices rose by 18.4 per cent in the period surveyed and The Economist calls it ...

Mortgage lending at lowest level since records began... MORTGAGE lending plunged last year to the lowest level since records began in 2005, as borrowing by investors and those seeking to trade up plummeted. Just €8.08bn of mortgage loans were issued in 2009, a 65pc drop on the previous year, the Irish Banking Federation said yesterday. The number of loans made fell 58.5pc to 45,818. “The data illustrate how difficult 2009 was for the mortgage market,” Irish Banking Federation boss Pat Farrell said. “The general economic situation, consumer confidence, the unsold housing stock and house-price movements will be among the factors to influence market activity in 2010.” Despite the plunge, first-time buyers and people moving house still only accounted for two-thirds of mortgage lending in the final quarter of 2009. Investors and those seeking socalled top-ups or remortgages accounted for the remainder. The market remains so moribund that there are more people borrowing money to “top up” the...

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 t...

The average Dublin house price is now €242,000 according to the latest Daft report... ASKING prices for residential property around the country fell by 19 per cent during 2009 and are now nationally 30 per cent below asking levels in early 2007, according to Daft’s latest house price report published today. The national average asking price for residential property at the end of 2009 was €242,000 – a fall of €107,000 from the peak in early 2007. In Dublin, asking prices have dropped by up to 42 per cent since the peak says the report. Earlier this week the country ’s largest estate agency chain, Sherry FitzGerald, said that house prices had dropped 20.3 per cent nationally in 2009, and in Dublin, had fallen in real terms by 45.7 per cent since 2006. Commenting on the link between price falls and movement on the market, Daft economist Ronan Lyons says that while Dublin saw the largest fall in house prices in 2009 “the total stock for sale in the capital fell by almost 20 per cent over...

Just eight houses sold under the hammer in Dublin this year, as the number of houses offered at auction collapsed by 80 per cent. In total,19 properties were offered for sale in the capital’s auction room; in 2006, at the height of the boom, more than 1,000 properties were auctioned in the city. Estate agents Bennetts held most of this year’s auctions, putting five properties under the hammer. Lisney handled four auctions, as did Sherry FitzGerald, while Colliers Jackson-Stops auctioned three. Douglas Newman Good, Harper O’Grady and Property Team each held one auction. Simon Ensor, director of auctions at Sherry FitzGerald, described the number of auctions this year as unprecedented. ‘‘In the past, a quiet year for us would have been one where we [Sherry FitzGerald] held 25 auctions and where overall, there were around 100 across the entire market," he said. ‘‘I’ve been selling houses by auction since the mid-1980s, and I don’t ever remember a year where there were so few sales....

Price drop? About 50% - and all agree... PROPERTY prices to fall 45 per cent, one of this week’s headlines read; property prices have fallen 70 to 80 per cent, said another. And just last week, the ESRI/Permanent TSB reported that prices were down 24.4 per cent “from the peak in February 2007”. Confused? Yes, especially if you didn’t take in that international ratings agency Fitch’s warnings of a 45 per cent drop in Irish property prices related to the fall from a peak, which it said was in December 2006. And exasperated, if like estate agent Ian Finnegan of Finnegan Menton, you’re well aware that prices have already fallen by as much as 50 per cent. Since when? “Mid-2006,” says Finnegan, which he identifies as the real peak. Most in the industry agree with him: MyHome’s property consultant Paul Murgatroyd reckons prices have already fallen by an average of 40 per cent and have another 10 per cent or so more to fall before the market hits bottom – probably in the second half of 2010. I...

A 50pc descent from peak to trough... IF there is one economic certainty for 2009 it is that Irish house prices will continue to fall just as the economy accelerates in reverse. Even the most bullish of commentators or indeed vested interests have pencilled in 2010 as the earliest date for a turnaround. According to the ESRI, which is now firmly in the bear's camp, prices are likely to end 2009 at the same level as the last half of 2003. This means anyone who bought from 2004 on is very likely to have a home worth less than they paid for it. With the economy set to decline by 5 per cent or more and employment to fall by as many as 140,000 jobs resulting in double digit unemployment figures, people will simply hold off on most purchases. According to Jim Power, chief economist at Friends First this deterioration in the labour market with massive job losses and increased job uncertainty as well as downward pressure on wages will keep sentiment pretty negative. The result, he says, wi...

Property spend plunges €40bn... Irish spend on property has crashed by 60pc in 2008 compared to last year, with expenditure down by a crushing 73pc -- or around €40bn -- since the market peaked in 2006. Our property spend is forecast to fall to €15bn this year -- down from €45bn in 2007 and a heady €54.4bn in 2006, according to the latest 'Property Outlook' from Savills. Joan Henry, head of Research at Savills Ireland says that all sectors of the property market have been affected -- most obviously the new homes area. The total spend on new homes is expected to fall from an estimated €23bn in 2007 to just €6bn this year. Spend in the Irish investment market is expected to be down as much as 75pc from last year's €2bn. Spend on domestic land is expected to fall by a staggering 80pc. In the new homes as in the second hand market, prices have fallen by as much as 30pc this year and maybe more if looked at on an individual basis. "Successive price reductions this year, cou...