Daft Property - Irish Property News

Fall in house prices second-highest in EU... Irish house prices fell at the second-fastest rate in the European Union last year and at a rate that was almost five times faster than the EU average, according to data compiled by academics based at the National University of Ireland in Maynooth (NUIM). The figures published by the university’s All-Island Research Observatory show that Irish property prices are now nearly 30 per cent below a standardised average dating back to the middle of 2010. They indicate that the Republic has had the worst-performing property market in the EU over the last six years , although markets in Spain and Bulgaria have performed almost as badly in recent years. The data does contain some glimmers of hope that a recovery may be in sight or at least that the worst of the price falls are over. The figures, compiled from Eurostat price surveys, show the Republic reporting the third-highest quarterly property increases in the third quarter of last ye

IRISH house prices are expected to fall by another 20pc, according to a new report by Moody’s Investor Services. The report states that house prices have fallen by 49.9pc between September 2007 and April 2012. ''Moody's expects that house prices will fall a further 20pc from today's levels (bringing the aggregate peak-to-trough fall to 60pc)," it added. It added that the majority of Irish homeowners are now “deep into negative equity.” And it also said that he performance of Irish prime residential mortgage-backed securities continued to deteriorate during the three months ended April 2012. Given the current climate, Moody's said the Irish economy would only grow by 0.2pc in 2012. "In this weak economic recovery, it will be difficult for distressed borrowers to significantly increase their debt servicing capabilities and so arrears are likely to continue increasing,'' it warned. Independent.ie reporters

NCB Stockbrokers said the price of buying a home will fall by at least a fifth in the years ahead as Ireland recovers "from the largest credit and housing bubble in OECD history". The Dublin-based broker calculated that the eventual national decline from peak to trough will be 60pc. Average prices have fallen 47pc so far which implies that prices must fall by at least another 20pc before hitting rock bottom. "The boost from domestic demand will not be material until 2013. Unemployment, currently 14.3pc, will remain above 10pc until 2016," NCB economist Brian Devine warned. "As such, there should be no surprise that property prices continue to decline, mortgage arrears continue to rise and retail sales remain weak," he said. Prices in Dublin have already fallen close to this amount with apartment prices in Dublin down 58pc and house prices in Dublin down 54pc. Mr Devine said he remains worried about the fundamentals underpinning the Irish economy but kept

An oversupply of housing and continued uncertainty are among reasons there is little hope of growth in the residential market... IN SPITE of last month’s budget measures aimed at stimulating the property market, there are six reasons why the market will remain slow to recover. The National Institute for Regional and Spatial Analysis (NIRSA) at NUI Maynooth is one of the few bodies which has been consistently researching the housing market with any degree of rigour. It believes that the budget measures aimed at boosting the residential property market won’t work. Firstly, prices are still falling, or “unwinding”, and most analysis suggests they will continue to fall for up to the next 24 months. No correction can happen until prices stop falling. But even when they do stabilise, there are other issues to take into account. We have a massive oversupply of housing. CSO figures say 14.7 per cent of the total stock is vacant. My calculations say that excluding second a

Number of 'ghost estates' hits 2,881... THE NUMBER of “ghost estates” has increased, figures to be published next month will show. Colm Ó Ruanaidh, senior adviser on social housing at the Department of the Environment, told the housing policy conference that the count for this year was not yet complete, but semi or unoccupied housing developments showed there had been an increase from 2,846 last year to 2,881 this year. A departmental spokesman said Mr Ó Ruanaidh was working from “raw data” that would be finalised and published next month. “The additional 35 developments constitute an increase in the number of dwellings in ghost estates from 179,230 last year to 179,900,” Mr Ó Ruanaidh said. Some 230 unfinished developments have met the criteria to benefit from a €5 million fund to address immediate safety concerns. A guidebook for residents in unfinished estates is to be published in coming weeks. Marian Finnegan, chief economist with Sherry FitzGerald, said the c

House prices ‘could fall by 67% from peak’... INTERNATIONAL credit ratings agency, Fitch Ratings has warned of "further downside risks" to Irish house prices; adding that prices could ultimately fall by 67% from peak levels in a worst-case scenario. In a new report on the Irish housing market, Fitch said it realistically expects prices to show a total drop of 50% from their peak around four years ago. However, it added that while that rate of decline forms "the most likely scenario", a worst-case scenario would result in a full-term 67% drop in house prices. "Irish house prices continued declining during 2010 and now are approximately 42% below the peak. "In light of the oversupply of properties and continued restricted credit availability, the agency sees further downside risks to Irish house prices and as a result, Fitch now expects a peak-to-trough house price decline of approximately 50% as the most likely scenario," said Ketan Thaker, sen