Daft Property - Irish Property News

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

Thousands facing a future living in unfinished estates... TENS of thousands of homeowners face the prospect of living in unfinished estates for the foreseeable future. Construction bosses admitted yesterday that incomplete developments may never be finished. Cash-strapped builders can't get loans to tidy off their estates and now heavily mortgaged families will be forced to remain there without proper roads, footpaths, green spaces and public lights. Former president of An Taisce Eanna Ni Lamhna, who is still an active member, told the Irish Independent that the state's heritage body had long warned of the effect of half-built houses on the landscape. "It doesn't give me any pleasure to say that if they'd listened to An Taisce, we wouldn't be in the situation we're in now with all these houses," she said. "I must say that we've been saying for years that it was too much too soon. I was told that I was against development and we were against ev

Fears raised over stamp duty issue... REACTION: ESTATE AGENTS fear the struggling second-hand housing market may well grind to a halt after the disclosure that stamp duty may be abolished and replaced with an annual property tax. The Government will be under pressure to clarify whether it plans to implement proposals by the Commission on Taxation in the December budget, having already signalled that it it may not proceed with the property tax. Buyers who may be tempted by heavily discounted prices in second-hand houses will be reluctant to make commitments until the stamp duty issue is clarified. The report comes at a time when house sales were beginning to pick up at the opening of the autumn selling season. However, agents last night warned that activity could cease until the Government indicated whether it would proceed with the taxation changes. The Irish Auctioneers Valuers Institute (IAVI), which represents about 1,700 estate agents, last night urged Minister for Finance Brian Le

Roll up for the great property giveaway... Agents say an estimated 24% drop in house prices is far too low... There were double-takes all round last Monday when the Permanent tsb /ESRI house price index announced a 24% drop since February 2007 – a figure many believe to be conservative in the extreme. It's difficult to find out exactly what a property sells for as, under the Data Protection Act, publication of selling prices is prohibited and information is therefore based on asking price. Those involved in the business believe a truer estimate of just how far property prices have plummeted is between 40% and 50%. And counting. Ronan O'Driscoll, director of new homes at Savills, points to "the concrete example" of his own home. "I bought it for €1.9m in 2006, but one on the same road sold recently for around €850,000." The new homes landscape has changed radically in ways other than price, he adds, saying that negotiating a deal on a brand-new property is no

Property: making a move... With house prices set to fall even further, it's no surprise that most buyers are sitting on the fence. But for those who have no choice but to bite the bullet, think long-term... All the available data and commentary on the domestic property market suggests the continuing fall in prices still has some way to go, so it's no surprise that the majority of potential buyers are still opting to "sit on the fence". But the Irish Banking Federation (IBF) recently reported a 9pc rise in new mortgage lending in the second quarter of 2009 when compared with the first three months of the year. But with new lending still 7pc lower than in the same period last year, the IBF said it was too early to say if the market had turned a corner. Karl Deeter, of Irish Mortgage Brokers, reports an increase in applications and numbers of loans because of recent price falls. "We had felt for some time that price drops would come fast once the realisation about t

Crazy to sell in a buyer's market? If you are considering selling property but are afraid it might be neither nor viable nor sensible at this time, you may be pleasantly surprised to discover that there is a market out there – you just have to know your audience and what appeals to them... If you have a property that you are keen to sell, you may be debating the wisdom of doing so at a time when prices are dipping and so many others are holding back, but though it may feel like a lonely and risky path to take now, you would not be the only person in the country doing it. "We're seeing a mix of people selling at the moment," says Gillian Flanagan of Felicity Fox Auctioneers in Dublin. "We have a lot of people trading up, particularly young families with children who have outgrown the space they're in, people who need to move because their employment has changed location and people from different countries who are moving home. At the same time, a lot of people

Take a long look at the chart below. Digest it. Maybe look again if you have to. This happened in the most sophisticated economy in the world. This is what happened to the price of development land in Japan. Prices roared upwards and then collapsed, ending up below where they started at the beginning at the boom. This is likely to happen here; development land is likely to settle back to 1996 prices. We haven’t seen the half of it yet . When we hear some property lads talking about green shoots, this chart should be enough to tell them to snap out of it. But we can’t seem to snap out of it. We are still caught in the trap. We seem to believe that the price of houses and land will miraculously rise again some time soon. This will not happen. It can’t and shouldn’t. In fact, houses prices are likely to fall another 50 per cent from here before we see anything like the bottom. International comparisons bear out these forecasts. Until now, many Irish people have clung to the myth of what

What Dublin buyers are really paying... What’s your house really worth? Secret house sale data for the first four months of the year shows that in some cases, houses in the Dublin area are selling for half what the owners wanted. And nearly 20 per cent of buyers are paying cash... DATA FROM the sale of almost 200 homes in the Dublin area seen by The Irish Times show that house prices in the capital have dropped by up to 52 per cent since 2007. The data relates to 192 sales conducted by one of the country’s leading estate agencies in the first four months of 2009. The properties represent a wide range of homes at virtually every level of the market and in most postal districts. The majority of the 192 homes sold had been on the market since 2008, with some properties on sale since 2007. Analysis of the sales show that homes at the lower end of the price scale have fared best, selling for between 5 and 20 per cent below asking prices. In a very small number of cases starter homes actual

Best to ignore the cheerleaders for the property sector... HAPPY new year? Not really. The banks are at death’s door. Unemployment is rocketing. Cuts much more severe than those proposed in the recent budget are inevitable. The recession is deepening, with fears that Ireland is on the verge of a so-called ‘lost decade’ growing increasingly realistic. We’re up the creek. Auctioneers and developers, however, have a different vision for 2009, one where ever more affordable homes will be snapped up by a willing populace. After all, construction firms cannot cut prices further as they are “down to their bottom line” on prices, according to one builder recently. Indeed, those who are “stupidly waiting” for prices to fall further should cop themselves on and realise that prices are bottoming. This stupidity has been disappointing developers for some time now. In August, property tycoon Derek Quinlan noted that first-time buyers must be given the confidence to buy as “negative media comm

Spectre of gloom looms for those who keep their jobs as well as those laid off... GOING, GOING gone. Once these three words were the oft-repeated mantra of Ireland's busy auctioneers; now they form a gloomy synopsis of the state of the Irish jobs market. With no homes going under the hammer, the axe fell on jobs in the construction sector over the course of 2008. A decisive coinciding blow from the global economic crisis saw the reverberations spread through all sectors of the economy. Jobs are now being lost at such a fast rate that an Opposition leader (Labour Party's Eamon Gilmore) can call the soaring unemployment rate a "national crisis" and it doesn't sound like political hyperbole. Having started the year below 5 per cent, the estimated unemployment rate in November was 7.8 per cent. Economists now forecast that the rate will jump to double digits by the end of 2009. Almost 100,000 people joined the Live Register of unemployment benefit claimants in the fir

Ireland: Testing Times... How do we cope with recession? Valerie Shanley hears from leading experts and thinkers... In with the old, out with the new. But if we started 2008 as slightly mangy Celtic Tigers, who are we now as we venture a toe into 2009? The collapse in our economy has left an entire section of society feeling much poorer – especially those with big houses and share portfolios in Irish banks. Gone are the days when estate agents could tell you that the first thing new owners of a house should do on moving in was to rip out the designer kitchen the previous owners had only recently installed and replace it with another. Because gone are many of those estate agents. If the masters of no universe are having to re-evaluate the way they look at themselves, what about the rest of us? Even though most people were observers, as opposed to participants, in the ostentatious wealth of 'the boom', there was a positive, knock-on effect in confidence generally. Looking around,

More price cuts as season starts... There will be a drop in the supply of houses new to the market in 2009, but sellers are still having to cut prices - again... THE DUBLIN property market has opened with price cuts at all levels of the market, as sellers digest news of the country's deteriorating finances and economists' gloomy forecasts. Estate agents are taking a fresh look at their stock and advising sellers to reconsider prices. The reassessment is going on at all levels of the market, according to Peter Kenny of Colliers, where notable price cuts include €130,000 off a three-bedroom penthouse in a development at Old Conna, Riverdale, on Dargle Road, Bray, Co Wicklow. The 130sq m (1,400 sq ft) apartment with river views has has been reduced from €560,000 to €430,000. Colliers has also dropped the price of a four-bedroom semi at Burnaby Mill in Greystones from €720,000 to €580,000 in an effort to attract buyers, while in Dún Laoghaire, Gunne has just dropped the price of an